A new initiative is set to benefit low-income households by providing an annual payment of $5,400 to some Americans. As part of an upcoming program to assist low-income households, certain 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 promised to implement 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 groundbreaking initiative aimed at providing financial assistance to some of Montgomery, Alabama’s most vulnerable citizens is about to begin. This program, designed to help low-income families, will provide qualified participants with an annual cash infusion of more than $5,000.
The program’s primary target is single mothers, who frequently face unique financial challenges. According to WSFA’s Simon Schuessler, Reed stated that the program’s goal is to directly assist families with their financial needs in order to combat economic uncertainty and foster resilience. Shuessler also stated that the program aims to provide an additional $5,400 annually to 100 Montgomery single mothers.
This annual payment has some special requirements 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 focused strategy 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 its website, the Mustard Seed Project aspires to a society in which everyone has the right to meet their basic needs, feel safe, and have the opportunity to improve their situation.
Montgomery is setting the standard for other cities facing similar economic difficulties as it prepares to implement 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 program is a positive step forward for Montgomery’s single mothers, as it allows them to create a better future for themselves and their children.
What are the benefits of an annual payment from a guaranteed income program?
Receiving a monthly or annual payment from a guaranteed income program could help millions of Americans who struggle to meet their monthly living expenses. 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 annual payment, would be able to pay their rent or purchase essentials like food, clothing, and medication.
- Employ more people. Those who can pay for daycare and transportation costs are more likely to seek and maintain employment. UBI participants also don’t have to worry about losing financial support if they find employment because the assistance isn’t dependent on employment.
- Encourage learning opportunities. A more educated workforce can result from using the monthly or annual payment to lower dropout rates and pay for college.