What is the Paterson Guaranteed Income Program?
The Paterson Guaranteed Income Pilot Program is one of the first city-run guaranteed income initiatives in the United States, providing $400 per month for 12 months to 110 low-income residents in the city.
Eligible applicants must have an annual income that does not exceed $30,000 for individuals or $88,000 for families, demonstrating the program's focus on assisting the most financially vulnerable members of the community.
The program received over 2,000 applications from Paterson residents, highlighting the high demand for direct cash assistance in the city.
The Paterson Guaranteed Income Pilot Program is part of a growing trend of guaranteed income initiatives across the U.S., with cities like Stockton, CA and Chicago, IL having launched similar programs in recent years.
Unlike traditional welfare programs, the Paterson Guaranteed Income Pilot Program provides unconditional cash payments with no work requirements, allowing recipients to spend the money as they see fit.
The program is a collaboration between the City of Paterson and the University of Pennsylvania, which will study the program's impact on participants' financial stability, mental health, and community connections.
Paterson's mayor has touted the program as a way to address systemic inequities and improve the lives of the city's low-income residents, many of whom face economic challenges exacerbated by the COVID-19 pandemic.
The Paterson Guaranteed Income Pilot Program is funded through a combination of city funds and private donations, demonstrating the growing public-private partnership approach to implementing these types of initiatives.
While the program is currently limited to 110 participants, the city has expressed a desire to expand the program if it proves successful, potentially reaching a larger portion of Paterson's low-income population.
The Paterson Guaranteed Income Pilot Program's focus on providing direct cash assistance aligns with the growing body of research that suggests unconditional cash transfers can have a positive impact on recipients' financial security, health, and overall well-being.
The program's design, which includes no restrictions on how the money can be spent, reflects the principle that low-income individuals are best positioned to determine how to allocate resources to meet their own unique needs and priorities.
The Paterson Guaranteed Income Pilot Program is being closely watched by policymakers and researchers across the country, as its outcomes could inform the design and implementation of similar initiatives in other cities and states.