The city of Worcester, Massachusetts, has initiated a pilot universal basic income (UBI) program aimed at providing financial support to struggling families. The program is funded by a $250,000 grant from the City of Worcester American Rescue Plan Act funds and will span over two years, offering monthly payments ranging from $100 to $500.
The Worcester Community Action Council (WCAC) will administer the UBI program, tailoring the payments to the specific needs of 52 low-income households. In addition to the financial assistance, the WCAC will provide participants with financial coaching to help them make informed decisions regarding the funds.
A noteworthy aspect of the program is its no-strings-attached approach, granting households the freedom to utilize the funds as they deem necessary. However, the WCAC will collect valuable data through monthly surveys to gain insights into the utilization of the funds, such as people’s priorities and whether the additional payments contribute to improved opportunities like savings, credit building, and housing.
The implementation of the UBI pilot program in Worcester marks a significant milestone for Central Massachusetts, as it joins other cities across the country that have initiated similar initiatives to support residents facing financial difficulties. Massachusetts is also home to the Rise Up Cambridge program, which provides $500 monthly payments for 18 months to 2,000 residents recovering from the impacts of the Covid-19 pandemic.
City manager Eric Batista fully supports the initiative, recognizing the potential benefits of cash assistance for enhancing families’ self-sufficiency. He eagerly anticipates observing the outcomes of the pilot program and considers it a stepping stone for potential future expansion.
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