Philadelphia, one of the biggest cities in the U.S., is also one of the poorest. It has the highest poverty rate among the country’s top 10 largest cities. Many families there face homelessness and a lack of job opportunities. Now, a new program is offering hope.
What Is the Prosperity Lab?
A nonprofit organization called Xiente has launched a new project called the “Prosperity Lab.” This 14-month-long pilot program gives selected low-income families $500 in cash every month. These families also receive housing support and help from economic mobility coaches who guide them toward better financial futures.
Who Can Join the Program?
To be part of the program, families must meet certain income limits. Their yearly income should fall between $34,400 and $68,820 for a family of four. This means they earn between 30% and 60% of the area’s average income.
Besides income, families are chosen based on their family setup and how involved they are with other Xiente programs. Only 10 families are starting the pilot program for now, but over 100 have already been paired with coaches.
What Makes Guaranteed Income Different?
Guaranteed Income (GI) is not the same as regular welfare. There are no job requirements, drug tests, or work hours needed. Families receive money with no conditions. Unlike Universal Basic Income (UBI), which would give everyone money no matter their income, GI is only for low-income earners.
This approach became popular after the Biden administration gave local governments money through the American Rescue Plan. Many cities started testing GI programs to see if they help reduce poverty.
Some believe this model helps people work more and worry less about money. Others argue it could cost too much in the long run and make people depend on the government.
Xiente’s Goal: From Poverty to Middle Class
Michelle Carrera Morales, the CEO of Xiente, said the goal is to help people move from poverty to the middle class. She explained that while many programs teach budgeting and money skills, it’s hard for families to save or plan if they don’t have enough money to begin with.
Xiente wants to change that by giving people real financial help and trusting them to use it wisely.
Will It Work?
The program is being studied by researchers from the University of Pennsylvania. They will look at whether the money helps families improve their credit scores, save more, reduce their debts, find better jobs, and feel less stressed.
Funding for the program comes from The Vanguard Group Foundation and the Local Initiatives Support Corporation. Xiente plans to expand the program to reach 500 families in the future, depending on how much funding they can raise.
Other Similar Programs in Philly
Philadelphia has already tried guaranteed income programs in the past. In August 2023, another pilot helped 51 families with cash support. There’s also a program that gave $1,000 monthly to pregnant women to improve infant health.
These programs are part of a bigger effort to fight poverty with direct financial help instead of only offering services.
