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Direct payments worth $1,000 a month for parents in Baltimore

Parents in Baltimore will be getting monthly payments of $1,000.

These payments will last for two years and are designed to help young parents.

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Who is eligible for the payments?

The payments are part of a guaranteed income pilot program implemented in Baltimore, Maryland. The program is called the “Baltimore Young Families Success Fund” (BYFSF). Payments are intended to help young parents dealing with inflated costs.

Baltimore finished identifying and onboarding qualified recipients. According to Mayor Brandon Scott, payments started processing on Monday, August 15. The funds will soon be available in approved recipients’ bank accounts or pay cards.

In order to qualify applicants must have met the following criteria:

  • Be a resident of Baltimore City
  • Be 18-24 at the time of the application deadline
  • Be either biological or adoptive parents, or guardians
  • Have full or partial care-taking responsibilities
  • Have income at or below 300% of the federal poverty level based on their household size.

Federal poverty levels for 2022 based on household size are as follows:

  • One member – $13,590
  • Two members – $18,310
  • Three members – $23,030
  • Four members – $27,50
  • Five members – $32,470

How were participants chosen?

Eligible applicants were placed in a randomized lottery. From there, 200 recipients were selected. Applicants were then placed into one of the four following groups:

  • Group A: 70 individuals were selected for a storytelling cohort. These participants will share their experiences with guaranteed income and will receive monthly payments worth $1,000 for 24 months.
  • Group B: 30 individuals selected for a research study. This group includes both quantitative surveys and qualitative interviews. This group will also receive a monthly payment of $1,000 for 24 months.
  • Group C: 156 individuals selected as a control group for the research study. This group will not receive monthly payments. However, they will be eligible for incentives for participation in the research activities.
  • Group D: The remainder of the applicants were not selected for any program portion, including the payments and research

During the onboarding process and benefits counseling, recipients said that they intended to use the payments to pay for career training classes and other means to achieve financial stability. BYFSF said it will also provide benefits counseling throughout the program.

Baltimore plans to use $4.8 million in funding from the American Rescue Plan Act to distribute funds to participants directly.

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