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Could a universal basic income provide ongoing stimulus funds?
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Lawmakers in Oregon are currently considering launching a program that would provide ongoing $1,000 payments to certain eligible residents.
The payments would be part of a universal basic income (UBI) program, and are being compared with the federal COVID-19 stimulus checks issued during the pandemic. That’s because researchers suggest these checks were similar to a massive UBI effort because they provided cash with no strings attached.
Here’s what Oregon’s new program would look like, along with some details about who might be in line to benefit from it.
Here’s who could get $1,000 checks
Senate Bill 603 is the proposal in Oregon that would provide $1,000 checks to eligible Americans. It is being sponsored by State Senator WInsvey Campos with the support of Residents Organizing for Change, a statewide advocacy group that aims to help ensure affordable housing for Oregon residents.
Under Senate Bill 603, a total of $25 million would be set aside to create a People’s Housing Assistance Fund Demonstration Program. This would be a pilot program that enables a total of 1,000 participants to receive checks of $1,000 per month over a two-year period of time.
The checks would be available to Oregon residents who currently do not receive any housing assistance and who have incomes that are at or below 60% of the area median. The program would operate statewide, making it the first UBI program carried out on the state level.
When the funds are distributed, a comprehensive study would be conducted to assess the effectiveness of the program and its implementation. The goal would be to determine if it should be expanded to include more people going forward.
The $1,000 UBI program was one of several plans that were considered by Residents Organizing for Change, along with stimulus checks that would be deposited into people’s bank accounts or sent via check.
Could more Americans become eligible over time?
If the pilot program moves forward in Oregon and is a success, the UBI program could be expanded in the state and could also potentially serve as a model for other locations in the U.S. that hope to cut poverty and homelessness.
Stimulus checks handed out during the pandemic played a major role in reducing financial struggles for many since the checks offered an influx of cash people could use to meet whatever needs they had (rather than typical government assistance which is usually more targeted). Since the checks helped to reduce poverty and increase the savings rate, it stands to reason that offering a universal basic income would likely have the same effect.
Of course, it’s not yet immediately clear Oregon’s pilot program will launch, so even if the program is a success, it could take years before other states decide to take a similar approach to providing money to those who need it.
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