$12K For Free: Newark’s Guaranteed Income Experiment Is Wrapping Up

NEWARK, NJ — An experimental “guaranteed income” program is wrapping up in Newark, but it’s seen some big success since launching two years ago, officials say.

In October 2021, Newark kicked off a massive, two-year social justice experiment: give hundreds of local residents $12,000 in “free money” for 24 months – with no strings attached on how they could spend it, and no work requirements.

The cash came from a mix of private and corporate donations, as well as public funds from the federal American Rescue Plan. The program was rolled out as vast sections of the city were still struggling to recover from the coronavirus pandemic.

According to officials, the city’s pilot program is slightly different from the concept of “universal basic income,” where every resident gets cash payments. Instead, guaranteed income targets specific communities and demographics – mainly people living below the poverty line.

Newark’s program isn't meant to replace other social services – only to supplement them. But in a city where nearly one in three residents live below the federal poverty line, and many can’t survive a simple $400 emergency, the cash is a much-needed source of financial relief, its supporters say.

Many people taking part in the program reported that they spent the money on crucial budget areas, such as food, housing, clothes, utilities, gas, car repairs, household goods and hygiene products. Other expenses included loan repayments, medical expenses and tuition. See Related: Newark Gave 400 People 'Guaranteed Income' – See How They Spent It

“The Guaranteed Income Program helped me pay off all of my preexisting debt, buy my four kids new uniforms, winter clothes and boots,” a local mother said, echoing a story that many other participants shared with city officials.

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With the pilot program set to end soon, Newark officials will be holding a roundtable discussion to highlight its success – and what it could mean for other towns and cities in New Jersey.

The event is part of the Guaranteed Income Works national tour and will include a screening of “It’s Basic,” a documentary feature film following guaranteed income recipients from pilots across the nation, including Newark. It will take place at 7 p.m. on Tuesday, Oct. 24 at the New Jersey Performing Arts Center’s Victoria Theater. It is free and open to the public. Register online here.

“Here, and in cities across the country, this program empowers people to gain control of their finances and build economic independence,” Mayor Ras Baraka said. “Coupled with the fact that it reduces stress and instills a sense of wellbeing, we are committed to continuing these efforts for qualified individuals and families in Newark.”

“Hopefully, someday, there will be no need for this program,” Baraka said. “But until then, there is no good argument not to offer our residents the benefits of guaranteed income.”

• See Related: $12K For Free: Newark Ramps Up 'Guaranteed Income' Experiment
• See Related: Free Money In Newark: City Experiments With Pilot Program

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