Newark Moves Closer To Giving Residents ‘Universal Basic Income’

NEWARK, NJ — The City of Newark is moving forward on a proposal to create a universal basic income pilot program for residents, Mayor Ras Baraka reported Tuesday.

The goal of the proposed pilot program would be to give low-income families – who can be “destroyed” by as little as a $400 emergency – a way to keep their heads above water, Baraka said.

Universal basic income – offering people regular cash payments with little or no requirements –remains a controversial way of fighting poverty. Supporters hail its simplicity and equity, but skeptics worry about its fiscal cost and incentives, according to the International Monetary Fund.

Newark city officials introduced the idea of starting a universal basic income program last year. On July 25, the city launched a Guaranteed Income Task Force with a meeting at the Newark Community Economic Development Corporation. The mission of the new task force was simple: figure out if a "basic income" pilot would make sense for the Brick City.

• See related article: Newark Considers Giving 'Guaranteed Income' To All City Residents

Baraka – who pushed for the idea of guaranteed income during his 2019 state-of-the-city speech – offered an update about the proposal on Tuesday after the most recent task force meeting.

According to Baraka, the task force is finishing up the proposal, including a document that details the program’s necessity, target population, expected impact and policy recommendations.

Hopefully, the pilot program will enable Newark to offer the state of New Jersey – and possibly the federal government – some suggestions on how to help financially struggling families to “get a leg up,” Baraka said.

“We’re working on it… we’re pushing,” the mayor asserted. “You’ll get to see the results of it very soon.”

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