THOUSANDS of students could receive a $500 monthly payment under a proposal – and the deadline for the law is this week.
Many Americans have been accustomed to receiving payments directly from the government since the start of the pandemic.
Millions of people have received three federal rounds stimulus test – worth $1,200, $600 and $1,400 respectively.
A key difference between the two payments is that the UBI is repeatable, while the stimulus check is one-time.
More specifically, the stimulus tests are aimed at fostering a turbulent economy, while the UBI tests are aimed at low-income Americans.
Present, California San Jose State Senator Dave Cortese is leading the charge receive 14,000 poor students $500 recurring payments.
Mr Cortese, who shared more of his proposal with The Sun, first took office in December 2020.
Prior to that, Mr. Cortese served 12 years on the Santa Clara County Board of Supervisors.
What is the UBI Proposal?
At the moment, it’s unclear how long the guaranteed income will be proposed, but Mr Cortese has made a prediction about the cost of that income.
By his rough estimate, a three-year plan would cost California about $57 million, while a five-year plan would cost about $84 million.
If approved, the program will provide aid to students whose families are in the bottom 20 percent of the state.
For $500 monthly recurring payments, some of the schools being considered include San Francisco State, CSU East Bay, CSU Los Angeles, Fresno State, and San Jose State.
Up to 14,000 students qualify.
According to Mr. Cortese, a proposal for a program could be on the way soon, as the state legislature’s deadline is February 18.
“We expect a bill to be formally introduced,” he said.
Cortese’s colleagues, including budget chair Senator Nancy Skinner and budget subcommittee chair John Larry, are currently working on the details.
The senator is pushing for a guaranteed income program for college students in part because of the level of poverty among young people.
According to Cortese, 25% of the homeless population is under the age of 25 in Silicon Valley.
Another study cited by Mr Cortese found that 11% of students in the Cal State University system experience homelessness.
“The idea is, this is a good niche to focus on demographics,” said Mr. Cortese of the guaranteed income plan.
The future of UBI
While states are implementing UBI programs using Covid relief funds, they are bound to run out eventually.
That means states or the federal government will have to pass additional laws to continue these programs.
But UBI has shown an anecdotal success so far. That happened inside another city in the senator’s state – Stockton.
According to Mr Cortese’s preliminary analysis, the Stockton program cut “income volatility” and helped beneficiaries find full-time work and improve their health.
UBI’s goal is to provide people with regular payments with no strings attached, meaning the money can be spent or saved wherever the recipient wants.
Currently, in the US, the closest thing to UBI is the $3,600 expansion child tax credit in 2021, sent monthly payments to eligible families between July and December.
Many federal programs include the Supplemental Nutritional Assistance Program, or food stampsand student financial aid is targeted at a specific area only.
In other words, you cannot use assistance from those programs for anything other than to cover food or tuition.
“If you give students, say, $500 and a Section 8 voucher is just good for housing,” Mr. Cortese said.
He then asked, “What if they needed $50 worth of groceries? What if they need a warm coat or a pair of shoes even if it’s a thrift store? “
Currently, the way UBI programs across different cities in the country are set up are aimed at low-income Americans.
Mr. Cortese said he would be willing to make these programs available to middle-income Americans who qualify for a federal stimulus check.
But for a UBI program to pass at the federal level, it would have to pass Joe Manchin of West Virginia, who is one of the most conservative Democrats in the Senate.
The future of stimulus testing
Many are also wondering if there will be more stimulus tests in the future.
A scenario when more stimulation is possible is weathering another potential economic disaster.
But that’s not the case now, as the economy in 2021 is growing at its fastest rate in about four decades.
Stimulus checks serve as one purpose – and that’s to boost the economy during tough times.
While prices are skyrocketing, consumer demand is high.
Mr Cortese noted that if those payments were to continue, they would need to be managed “very carefully” to avoid “overstimulation”.
That said, maybe Californians can get another $1,100 payout This year.
This is a form of tax refund due to projected budget surplus of $45.7 billion.
Mr. Cortese said that tax breaks are just one of the possibilities that reward taxpayers.
This includes infrastructure, education and other public investments.
Governor Gavin Newsom said he expected to include a tax break in an amendment in May, although they were not included in the original budget proposal.
Meanwhile, Americans today are only left claim up to $1,200 worth of stimulus checks.
In addition, about 800,000 Americans can receive a payout of $500 under a new proposal.
Also, see what documents you need Earn up to $22,503 from IRS.
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https://www.the-sun.com/money/4687937/ubi-college-students-monthly-payments-california/ Thousands of Americans could get $500 a month for up to 5 years as senator reveals deadline is this week