Michael Tubbs is mayor of Stockton, California. Melvin Carter is mayor of Saint Paul, Minnesota. The opinions expressed in this commentary are their own.
For millions of Americans, the initial stimulus checks provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which allotted $1,200 per adult and $500 per child for households under a certain income threshold, lasted only a few weeks.
The most vulnerable families spent the equivalent of one-third of their stimulus within the first 10 days. Now, five months into the pandemic, at least 30% of renters and homeowners in one survey said they still can't pay their full rent or mortgage payments on time, and nearly one in four families reported that they don't have enough food. This is unacceptable.
Congress simply isn't doing enough yet. Conditional assistance tied to work or a single stimulus check are not -- and frankly never have been -- enough to protect Americans from economic insecurity.
What we need in this moment to meet the need and help families who are struggling is a Covid-19 guaranteed income, with direct, recurring cash payments for all Americans -- including immigrants -- that last at least until the economic hardship of this public health crisis ends. A form of Universal Basic Income, this guaranteed income is unconditional, won't interfere with other social safety net benefits and would help give Americans an income floor during a time of great economic instability.
Insufficient and ineffective aid at the federal level has ripple effects in our communities. When folks can't pay for basic necessities at local businesses, those businesses can't pay their workers, and jobs and incomes disappear. According to a working paper from the Becker Friedman Institute for Research at the University of Chicago, up to 42% of recent layoffs could become permanent.
In San Joaquin County, California, which includes Stockton, the unemployment rate has risen to 15.9%. In Ramsey County, Minnesota, which includes Saint Paul, it's 10.1%. And those who have managed to keep their jobs or who are now returning to work are seeing pay and hourly cuts or freezes.
As mayors, we interact with constituents every day and know the challenges Main Street faces better than anyone. We are on the political frontlines, fighting against the local effects of a global pandemic. Another one-time stimulus check, as included in both the House and Senate stimulus proposals, fails to provide the economic security that Americans deserve, especially in this crisis. The problems our cities face may be different, but the solutions to them are the same: recurring cash payments to help Americans brace for the economic ebb and flow of the pandemic.
We know unconditional cash payments work because we've tried them. The Stockton Economic Empowerment Demonstration (SEED), the nation's first mayor-led guaranteed income demonstration, has been giving 125 residents $500 per month for 24 months. Spending data from the program shows that not only did SEED recipients leverage the cash to prepare for and get through the first month of the pandemic, but some were able to find new jobs and continue to pay down debt.
In Saint Paul, our Bridge Fund provided more than $4 million in direct emergency relief for families and small businesses most vulnerable to the economic impacts of Covid-19. In just 10 days, we received over 5,200 applications from families in our community in need of help. With the available funds, we were able to provide 1,265 of those families with a one-time grant of $1,000 for living expenses.
Because we know that too many in our community continue to struggle, we're exploring a full-scale guaranteed income pilot -- similar to the program instituted in Stockton, California and inspired by the writings of Dr. Martin Luther King Jr. -- to provide recurring cash payments to help families put food on the table. We anticipate announcing next steps later this year.
In the first months of the pandemic, direct payments helped families make ends meet, with outsized impacts in communities of color. Moving forward, cash will continue to give people the freedom to respond to their own unique circumstances and spend money on their most immediate needs, be it food for their households, repairing a car to get to work or medicine to treat a loved one.
As Covid-19 cases spike and the economic crisis deepens, congressional leaders must take bold action and use every tool in their arsenal to help Americans stay afloat. We need a Covid-19 guaranteed income. Because for many Americans, one more check just won't be enough.
