A new project is set to aid low-income households by providing a yearly payout of $5,400 to selected Americans. As part of an impending program to assist low-income households, selected residents of Montgomery, Alabama’s capital, will receive a more than $5,000 cash boost each year.
According to Montgomery’s WSFA 12 News, Democratic Mayor Steven L. Reed has committed to develop a guaranteed basic income program for the city’s single mothers.
You will need to meet these requirements to receive the $5,400 annual payment
A revolutionary effort aimed at providing financial assistance to some of Montgomery, Alabama’s most vulnerable individuals is ready to begin. This initiative, designed to help low-income families, will offer qualified participants with a yearly cash infusion of more than $5,000.
The program’s primary goal is single mothers, who frequently confront unique financial challenges. According to WSFA’s Simon Schuessler, Reed stated that the program’s goal is to directly assist families with their financial requirements in order to counteract economic volatility and foster resilience.
Shuessler further stated that the program aims to provide an additional $5,400 annually to 100 Montgomery single mothers.
This annual payment has some particular conditions that must be considered. Applicants must be single mothers with at least one child under the age of five to be considered. Furthermore, their annual income must be less than 130% of the federal poverty line, as determined by the US Department of Health and Human Services (HHS).
This tailored policy ensures that aid reaches those in greatest need, providing a critical safety net for low-income families. Furthermore, the Department of Health and Human Services confirmed that the following amounts correspond to 130% of the federal poverty line in 2025 in US states, districts, and territories other than Alaska and Hawaii:
- Family of one: $20,345
- Family of two: $27,495
- Family of three: $34,645
- Family of four: $41,795
- Family of five: $48,945
- Family of six: $56,095
- Family of seven: $63,245
- Family of eight: $70,395
The Mustard Seed Project, a nonprofit dedicated to assisting low-income and homeless individuals and families, worked with the government to create the guaranteed basic income program.
According to their website, the Mustard Seed Project aspires to a society in which everyone has the right to meet their basic needs, feel protected, and have the opportunity to improve their situation.
Montgomery is setting the way for other cities facing similar economic issues as it prepares to launch this groundbreaking program. The initiative’s emphasis on direct financial aid not only addresses immediate needs, but also lays the groundwork for long-term stability and resilience.
This initiative is a significant step forward for Montgomery’s single mothers, since it allows them to construct a brighter future for themselves and their children.
What are the benefits of an annual payment from a guaranteed income program?
Receiving a monthly or annual payout from a guaranteed income program could help millions of Americans who struggle to meet their monthly living expenditures. Nonetheless, there are other reasons why having these kinds of programs could benefit not only people but the entire economy of a country, such as:
- Reduce income inequality and poverty. People who receive universal basic income (UBI), whether monthly or annually, will be able to pay their rent and buy necessities like as food, clothing, and medicine.
- Employ more people. People who can afford daycare and transportation are more likely to look for and keep a job. UBI participants also do not have to be concerned about losing financial support if they find work because the assistance is not conditional on employment.
- Encourage learning opportunities. A more educated workforce may arise from employing the monthly or annual payment to reduce dropout rates and pay for college.
