PARENTS in Baltimore will soon receive much-needed relief in the form of $1,000 in monthly payments for the next two years.
It comes as rising costs due to inflation escalate the financial burden of young parents.
The payments are part of a guaranteed-income pilot program being run in Baltimore, Maryland called the Baltimore Young Families Success Fund (BYFSF).
According to Baltimore Mayor Brandon Scott, the city has completed identifying and onboarding qualified recipients and began processing payments on Monday, August 15.
The funds will soon reach the bank accounts or payment cards of the approved recipients.
“Guaranteed Income programs have been proven time and time again to improve the well-being of recipients, and I’m excited to see the impact these dollars will have on the lives of young families in need,” said Mr. Scott.
Who is Eligible?
The BYFSF is offering 200 young parents ages 18-24 an unconditional cash payment of $1,000 per month for 24 months to provide financial relief to their families.
Applicants must also meet the following criteria:
- Be a resident of Baltimore City
- Be between 18 and 24 years old at the time of the application deadline
- Be either biological or adoptive parents or legal guardians
- Take full or partial care responsibility
- Have an income of 300% or less of the federal poverty line based on household size.
The federal poverty lines for health and social services set for 2022, based on household size, are as follows:
- One member – $13,590
- Two members – $18,310
- Three members – $23,030
- Four members – $27.50
- Five members – $32,470
How the recipients were selected
Eligible applicants were entered into a randomized lottery to select the 200 recipients, according to the mayor’s statement.
The applicants were divided into one of the following four groups:
- Group A – 70 people selected for a storytelling cohort to share their guaranteed income experiences. This group will receive a monthly payment of $1,000 for 24 months.
- Group B – 130 people selected for a research study, including both quantitative surveys and qualitative interviews. This group will receive a monthly payment of $1,000 for 24 months.
- Group C – 156 individuals selected as a control group for the research study. This group does not receive monthly payments but is entitled to incentives for participating in the research activities.
- Group D – The remaining applicants were not selected for any part of the programme, including payments and research.
During the onboarding process and initial benefit counseling, recipients indicated that they intended to use the payments to pay for professional training courses and other means of achieving financial stability.
BYFSF said it will also provide performance counseling throughout the program.
The city will use $4.8 million in American Rescue Plan Act funds to distribute the funds directly to recipients.
Similar programs across the country
The idea of a guaranteed income program has become popular in many states.
For example, in Alexandria, Virginia, a guaranteed-income pilot program pays 150 participants $500 a month for two years.
This program runs until December 2023.
Troubled families in Phoenix, Arizona are getting $1,000 in debit cards for a year.
To be eligible, a family of four’s income must not exceed 80% of the median income for the area, which is $63,200.
A total of 5,000 low-income people will receive $500 a month for a year as part of Chicago’s Resilient Communities pilot program.
The first recipients received the direct payments in July.
The city said it is the country’s largest guaranteed income program.
Meanwhile, applications for a new program in the city of Evanston, Illinois, opened Monday.
This also offers select participants $500 per year.
Learn more about how some Americans are saving up to $10,000 thanks to President Biden’s enacted Inflation Reduction Act.
In addition, the direct payments should go out later this year.
https://www.the-sun.com/money/6018047/monthly-direct-payment-baltimore-parents-income-lottery/ $1,000 Monthly Direct Payments Going to Parents NOW – Do You Qualify for the Money?