Springboard to Opportunities Announces Basic Income Pilot
1:1 Fund partner Springboard to Opportunities announced in August that they are partnering with the Economic Security Project to begin the Magnolia Mother’s Trust, a universal basic income (UBI) program. Under the Magnolia Mother’s Trust, 15 Springboard families in Jackson, Mississippi will receive $1,000 monthly with no strings attached. Springboard families make an average of $11,030 annually, so this UBI experiment will more than double their income. This program complements existing efforts at Springboard to provide families with affordable housing and to accumulate savings via CSAs established for children and youth in Springboard communities.
Universal basic income is an innovation in which citizens or residents of a community receive a regular sum of money with no preconditions. UBI initiatives depart from anti-poverty programs that tie aid to specific purchases, like the Supplemental Nutritional Assistance Program (also known as SNAP or food stamps), or to work, like the Earned Income Tax Credit. UBI is not explicitly a wealth-building strategy, but by providing households with a basic level of income to stabilize finances and reduce income volatility, UBI may provide households with the financial security to allow them save and invest in long-term assets, such as homes and businesses.