NYC is launching a program to fight youth homelessness by giving direct cash payments to a group of homeless young people.
The program aims to prove that cash payments are a more cost-effective solution to solving homelessness than ignoring it or depending on dangerous, overflowing shelters. Will it?
Designed by the formerly unhoused, the experiment prioritizes Black, Latinx, Indigenous and LGBTQ youth, who experience multiple forms of discrimination.
While many believe money donated to unhoused people is spent poorly, this is actually a dangerous misconception. It’s typically spent on basic living necessities. That’s why this experiment could be truly transformative.
This experiment places unhoused youth in control – they’ll hopefully be able to become financially literate, prioritize their health, and get off the street.
The monthly payments of $1,250 will last two years and participants are able to request larger amounts up front if necessary to pay for housing. This is crucial, because housing in New York can be very expensive.
This program also offers a number of services, like financial literacy advice, designed to help the youth tackle the world with plenty of support.
This experiment helps vulnerable people who are already marginalized by a system working against them. Here’s hoping the experiment proves that when people have options to make the best financial choices for their own lives, everyone benefits!