Low-income households stand to gain from a new program that will provide certain Americans with an annual payment of $5,400.
Some residents of Montgomery, Alabama’s capital, would receive a yearly cash boost of more than $5,000 as part of a future program that will assist low-income households.
These conditions must be fulfilled in order for you to get the $5,400 yearly payment.
The start of a ground-breaking project that will provide financial assistance to some of Montgomery, Alabama’s most impoverished residents is imminent. This initiative will give eligible participants an annual cash infusion of over $5,000 with the goal of helping low-income households.
Single mothers, a demographic that regularly faces unique financial challenges, are the program’s primary objective.
Reed told that the program’s objective is to directly assist families with their financial needs in order to foster resilience and fight economic volatility.
Additionally, Shuessler emphasized that the program aims to give 100 Montgomery single mothers an additional $5,400 per year.
There are certain unique restrictions for this yearly contribution that must be taken into account. To be eligible, applicants must be single mothers with at least one child under five.
The U.S. Department of Health and Human Services (HHS) also requires that their annual income be less than 130% of the federal poverty criteria.
This targeted approach ensures that the assistance reaches the most vulnerable, providing low-income families with an essential safety net.
Additionally, the Department of Health and Human Services confirmed that, in U.S. states, districts, and territories other than Alaska and Hawaii, the following amounts equal 130% of the federal poverty criterion in 2025:
| Family Size | Income Amount |
| 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 government and The Mustard Seed Project, a nonprofit organization that supports low-income and homeless individuals or families, worked together to create the guaranteed basic income program.
According to the Mustard Seed Project’s website, it hopes to create a society in which everyone has the opportunity to improve their circumstances, feel secure in their safety, and have the right to meet their basic necessities.
As Montgomery prepares to launch this innovative initiative, it is establishing a benchmark for other cities with similar economic challenges.
In addition to providing immediate assistance, the initiative’s focus on direct financial aid creates the foundation for long-term stability and resilience.
This program is a step in the right direction for Montgomery’s single mothers, giving them the chance to build a better future for themselves and their children.
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What are the advantages of receiving a guaranteed income program payment each year?
Millions of Americans who struggle to make ends meet or pay their monthly living expenses could benefit from receiving a monthly or annual payout from a guaranteed income program.
However, there are more reasons why implementing such programs could help a nation’s economy as a whole as well as its citizens, including:
Reduce poverty and income disparity. The universal basic income (UBI), whether paid monthly or annually, would enable recipients to cover their rent and buy necessities like clothing, food, and medicine.
Hire extra workers. People are more likely to look for and keep a job if they can afford daycare and transportation. Because the help isn’t reliant on employment, UBI users also don’t have to worry about losing it if they find work.
Promote educational opportunities. Using the monthly or annual payment to pay for college and reduce dropout rates can lead to a workforce with greater education.
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