Americans in One City Get $500 Monthly Payments to Combat 'Toxic Stress'

Some residents in Tacoma, Washington, are set to earn $500 monthly payments through a no-strings-attached guaranteed program.

The Growing Resilience in Tacoma (GRIT) program was announced in 2020 by Mayor Victoria Woodards as a way to support low-income families during their time of need.

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"This project is designed to demonstrate that this type of cash investment can reduce feelings of overwhelm and toxic stress, improve economic stability, increase housing security, and improve health and well-being while reducing poverty in our community," the United Way of Pierce County program website reads.

Now, GRIT 2.0 aims to supply 175 randomly selected families with $500 in monthly checks, which can then be used as recipients wish. The payments started going out in April and will continue until June 2025.

"To restore truth to the idea of the American dream for working families, we must give people what they need to be successful," Woodards said in a statement. "If we are going to effectively eradicate inequity in Tacoma or in any city across America, then we must look at all of the conditions that impact our residents. This includes economic conditions."

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While some worry guaranteed income programs allow low-income residents to spend the money on non-essentials or even drugs and alcohol, The Seattle Times found 23 percent of GRIT's payments were used for food and groceries while 12 percent went toward housing and utilities.

"The results were startling," Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek. "Most used it to assist with groceries, housing, and utilities. In other words, these payments were keeping most of these families just keeping their heads above water financially, and that's a great thing."

For this year's GRIT program, there is a certain set of criteria you must meet.
Namely, you need to be single with children and have an income above 100 percent but below 200 percent of the federal poverty line in a qualifying Tacoma ZIP code.

Beene said basic income programs like Tacoma's are rapidly gaining popularity in other parts of the United States as local governments look to address poverty.

"If a monthly source of extra income can help elevate some families out of it, it seems like a worthwhile endeavor for their populations both socially and financially," Beene said.

For those who need a little extra help with grocery and utility bills, the monthly payments can be a lifesaver in Tacoma, especially as nationwide inflation stood at 3.5 percent year-over-year in March.

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"This has been a boon to help struggling families attain a lifeline in the American dream," Kevin Thompson, finance expert as well as founder and CEO of 9i Capital Group, told Newsweek. "This can also help individuals in their search for higher paying jobs versus taking the first possible opportunity."

As roughly 23 other states attempt their own version of a basic income program, Thompson predicts more will follow Tacoma's example as they look to put leftover federal pandemic relief money to use.

"Governments believe that over a longer period of time, the cost today will save them money longer term being that individuals will become more productive members and live healthier lives which may impact overall healthcare cost over longer term," Thompson said. "It is truly all about the money. People who are employed pay taxes."