California mayor insists cash handout program will solve affordability challenges, but critics question cost

A California mayor insisted that handing out monthly cash payments is an effective tool to combat the state's soaring cost of living, even as local leaders face steep hurdles in securing permanent taxpayer funding to keep guaranteed income programs alive.

"I believe that guaranteed income programs like our Rise Up Alameda (RUA) pilot program are a valuable and effective tool to address the affordability crisis, based on the documented experiences of program participants," Alameda Mayor Marilyn Ezzy Ashcraft told Fox News Digital. 

"The average age of the 150 program participants was 49 years, with 26% being 62 years or older, and most participants were either employed or retired."

Ashcrafts comments follow the completion of "Rise Up Alameda," the city's first-ever guaranteed income pilot project. City staff presented the program's final 24-month evaluation report to the Alameda City Council on Oct. 6.

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According to city documents, the pilot aimed to "reduce economic instability for program participants, help to change local narratives and perceptions surrounding poverty and the provision of public benefits, and help to support and inform the national discussion regarding public benefits and anti-poverty policies."

The Alameda City Council previously allocated $4.6 million in federal pandemic relief funds from the American Rescue Plan Act (ARPA) to finance the initiative, which provided 150 low-income households with $1,000 per month in no-strings-attached cash over two years. However, city notices confirm that because ARPA was a one-time federal allocation, the pilot has officially concluded, and the city currently has no plans or budget allocated for a permanent continuation.

"As Mayor, I believe our responsibility is to advance practical, compassionate, and evidence-informed policies that help residents meet their basic needs, preserve their dignity, and build a more stable future for themselves and their families," Ashcraft told Fox News Digital when asked whether she planned to implement a permanent program.

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Ashcraft highlighted several personal accounts of local residents who received monthly payments through the pilot.

Among them was Andrea, a certified nursing assistant who used the funds to stay afloat following the death of her mother. The financial boost helped cover medical bills, rent, gas, and Bay Area bridge tolls while allowing her to care for her father and ailing brother.

Another participant, Dolores, a retiree in her 70s living in affordable senior housing after a 41-year career at AT&T, used the extra $1,000 a month to pay off credit card debt and build an emergency savings account.

Other recipients included Haroon, a rideshare and transit driver; Julia, a woman with a disability who was able to buy new mattresses, groceries, and a set of car tires after an eviction forced her to move in with her sister; and Tyronne