What you should know
- The second phase of the City of Newark’s guaranteed income pilot program is underway.
- Mayor Ras J. Baraka announced Monday that 400 participants have been identified in the second phase of the program.
- Earlier this year, the City of Newark launched The Newark Movement for Economic Equity (NMEE), a two-year research study that will provide guaranteed income, or unconditional cash payments, to Newark residents, with a focus on those experiencing home insecurity.
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NEW JERSEY – The second phase of the City of Newark’s guaranteed income pilot program is underway.
Mayor Ras J. Baraka announced Monday that 400 participants have been identified in the second phase of the program.
Earlier this year, the City of Newark launched The Newark Movement for Economic Equity (NMEE), a two-year research study that will provide guaranteed income, or unconditional cash payments, to Newark residents, with a focus on those experiencing home insecurity.
After starting with an initial cohort of 30 residents, the second phase of the program has expanded to 400 people.
The program will address the economic insecurity faced by Newark residents by providing $ 6,000 per year for two years. In partnership with Mayors for a Guaranteed Income (MGI), the City of Newark has joined with 60 mayors in the US who have committed to launching a guaranteed income pilot program in their respective cities. How often people will receive disbursements will be a unique feature of the Newark program. Program participants will receive payments biweekly and semi-annually, 50% will receive $ 250 biweekly and the other 50% will receive $ 3,000 twice a year.
“At a time when our city still faces the challenges of COVID-19 and its economic impact, the largest and most important institution we should invest in is families,” said Mayor Baraka. “This will give our residents a much-needed boost and allow them to participate in the economy, regain their economic independence and strength, and move toward prosperity. This type of intervention can support our economy and our future ”.
On July 23, eligible Newark residents were invited to apply for the pilot program. To qualify, individuals had to meet the following four criteria:
• Must be a Newark resident
• Must be at least 18 years of age
• Must have an income equal to or less than 200 percent of the federal poverty line
• Must be adversely affected by the COVID-19 pandemic
After starting the application process in partnership with the Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania, the portal was closed approximately two hours later, after receiving more than 1,200 applications.
This study will be made up of people who will receive a guaranteed income and people who will not receive a guaranteed income in order to be able to make a comparison between both groups in a period of two years.
All participants were randomly selected by CGIR.
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