Providence Piloting Guaranteed Income Program

PROVIDENCE, RI — As Rhode Island slowly climbs its way out of the pandemic and towards economic recovery, the state's capital city is trying something new: offering direct financial assistance to residents most at need.

Providence is piloting a guaranteed income program, partnering with local nonprofits to provide monthly cash payments to the city's poorest individuals.

"The global pandemic has highlighted the inequities of our social safety net and exacerbated the disparities of health and wealth that exist for Black, Indigenous, and communities of color," said Mayor Jorge Elorza said. "The best way to protect the long-term health and wellbeing of our communities is by providing direct financial assistance to our residents and I am inspired to launch the Providence Guaranteed Income pilot program in hopes of encouraging policies aimed at reducing poverty at the municipal, state and federal level."

During the pilot program, 110 residents living at or below 200 percent of the federal poverty line will be eligble to apply for a monthly cash payment of $500, for 12 months. The program was designed as a supplemental source of income, rather than a replacement to traditional social safety nets, the city said.

"Guaranteed Income has been proven to change lives," Sen. Tiara Mack said. "When families can get their most basic needs met—food, housing, healthcare—they are able to focus on improving and advancing their current lives and focus on their futures."

The city partnered with Amos House, Dorcas International Institute of Rhode Island, ONE Neighborhood Builders, the Rhode Island Foundation, the United Way of Rhode Island and other community orgnaizations to design the program. Elorza joins dozens of mayors from across the country in the Mayors for a Guaranteed Income initiative, a coalition of mayors who pledged to explore direct cash payments to residents in need.

Providence received $500,000 for the program from Jack Dorsey, the CEO of Square, along with financial support from local groups, totaling $1.1 million to fund the cash payments and other costs associated with the pilot program.

"Barriers to economic security need to be dealt with head-on, and boldly," said Neil Steinberg, the president and CEO of the Rhode Island Foundation, one ofe hte program's financial sponsors. "Through innovative programs like this one, we have the opportunity to close the well-documented wealth gap and tackle inequities faced by communities of color. As the state’s community foundation, we are proud to partner with those committed to ending disparities by providing resources and leadership to help make this pilot successful for those that participate."

Applications for the program will be accepted online and by mail from Aug. 15 to 21. Participants will be randomly selected via lottery through the Center for Guaranteed Income Research. Selected indidivduals will be separated into two groups, one that will receive the funding and a control group. Members of the control group will participate in research activities such as focus groups, interviews and surveys, and will be paid a stipend for each activity they complete.

By household size, here's a look at who could qualify for the program, based on 200 percent of the federal poverty line.

• One person: $25,760
• Two people: $34,840
• Three people: $43,920
• Four people: $53,000
• Five people: $62,080
• Six people: $71,160
• Seven people: $80,240
• Eight people: $89,320