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st. More than 400 St. Louis families will receive $500 a month for a year and a half under a new bill signed into law by Mayor Louis-Tishawla Jones on Wednesday.
Working Family Bill will use $52 million in American Relief Plans Act (ARPA) funds to establish Missouri’s first Basic Income Guarantee program. A $5 million pilot program will provide him $500 a month for 18 months to about 440 households.
The remaining ARPA funds will be used to invest in public safety by expanding access to healthcare and creating new youth opportunities.
“From providing better opportunities for young people to expanding access to healthcare, Mayor Jones said in a statement, “This bill will provide direct benefits to our communities that are still struggling to get back on their feet. It’s an investment.
To be eligible for the $500 monthly payment, participating families must:
– Resident must be a parent or legal guardian of a parent whose child is enrolled in a public school in St. Louis
– Negatively affected by the COVID-19 pandemic
– Be below 170% of the federal poverty level based on family size/household income
“The Working Families Bill will give struggling families more power to pursue higher-paying jobs, help pay for childcare and pay off debt,” said City Council Chair Megan Greene. It gives us a real chance to break the cycle of poverty.”
The bill also makes an important investment in addressing the root causes of crime, according to the mayor’s office. This bill will use $2 million to establish the Behavioral Health Administration to tackle substance abuse and abuse. Also, $10 million is planned to support youth opportunities through enhanced youth diversion, programming, and job support.
In 2021, St. Louis will use ARPA funds to pilot a direct cash assistance program that will provide one-time $500 payments to more than 9,000 residents.
A group called Missouri Jobs for Justice published a report earlier this year about its direct cash assistance program. We found that recipients mostly spend their money on necessities such as utilities, groceries, and transportation. According to reports, more than 33% of his money has been withdrawn through his ATM or transferred to another account and cannot be traced. The authors suggest that it may indicate that some recipients’ needs were paid only in cash, or that flexibility was appreciated.
The report states that 80% of those surveyed are black and 71% are women. A majority of recipients also cited unemployment, unpaid leave due to COVID-19 or quarantine, and lack of childcare as reasons for needing funds.
The group’s findings also note that financial assistance prevented worsening health outcomes and reported reduced stress and anxiety.
St. Louis is piloting a similar program with 20 cities nationwide. The city has not yet released information on how residents can apply for the program.
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