Universal Basic Income in the US (2025): Payments, Eligibility & Application

Universal Basic Income is an idea which has been discussed by policymakers, economists, and social activists for a long time. In 2025, once more, the UBI proposal in the US is in news. It is meant to reduce the income gap, ensure economic security, and also cover the job loss implications because of automation. But what is the scheme exactly, who will be eligible, and how will it work? Let’s know in detail.

What is Universal Basic Income?

Universal Basic Income (UBI) is a government scheme wherein a fixed amount is given periodically to eligible people irrespective of their employment status. The primary goals are:

• Reducing poverty: This scheme offers financial support to people for basic needs such as food, shelter, and health services.
• Ensuring economic stability: This program offers a fixed source of income to individuals when the economy is in recession.
• Reducing the effect of automation: As technology advances, various jobs are lost because of automation. UBI can offer monetary security to people who lose their jobs due to automation.

The US government proposal aims to distribute $1,000 monthly to eligible citizens in 2025.

US Universal Basic Income (UBI) 2025 Proposal

Aspect	Details
Policy Name	Universal Basic Income (UBI) Proposal 2025
Proposed Payment	$1,000 per month per eligible individual
Eligibility	Citizens and legal residents aged 18 and above
Funding Source	Taxes on large corporations, wealth tax, and carbon tax
Goals	Reduce poverty, increase economic security, and address automation-driven job losses
Pilot Programs	Previous tests in Stockton, California, and other states
Official Status	Under debate in the US Congress, with potential implementation by late 2025
More Information	US Government Policy Page

Eligibility criteria for UBI 2025

Not all people are eligible for this scheme automatically. There are conditions for this too:

Citizenship or residence status

• He must be an American citizen or legal resident
• This scheme does not consider a non-resident or an illegal immigrant

Minimum age

• A person should have completed at least 18 years of age in order to obtain payments through this scheme.

Conditions regarding income

• Although no upper income limit has been fixed yet, priority will be given to those whose annual income is less than $75,000.

Tax compliance

• To avail the scheme, eligible people must file taxes regularly and follow tax rules.

How will the UBI proposal work?

1. Monthly payments

• Eligible individuals will receive $1,000 every month directly through a bank account or a prepaid debit card.
• This money will be distributed without any restriction, i.e., the receivers can utilize it as per their requirement.

2. Funding Source

• The following taxes have been suggested to make this plan economically viable:
• Corporate tax: More tax on those big corporations which are making profit due to automation.
• Carbon tax: This plan will be funded by the amount generated through environmental tax.

3. Adaptation with current plans

• Some existing social welfare schemes may be adjusted under this scheme, while some schemes will be retained.

4. Regular evaluation

• The government will review and evaluate this scheme from time to time to ensure its effectiveness and sustainability.
• Potential benefits of the UBI proposal

Reducing economic inequality

• The plan will provide financial support to lower- and middle-class families, thereby reducing wealth inequality.
• Promoting business and entrepreneurship
• People will be assured of receiving a fixed income, which they can use to take risks, starting new businesses or investing in education.
• Enhancing health and mental well-being
• Previous pilots indicated that UBI lowered mental stress among the people and enhanced access to health facilities.

Losses due to automation

• UBI will offer financial security to those who have lost jobs because of new technologies.
• Critics and challenges facing the UBI proposal

Expensive

• Some of the other experts feel that this plan is going to be around $3 trillion a year, which can put a very huge burden on the federal budget.

Lack of motivation

• Some people also feel that everybody will not want to work since money is distributed free. In fact, it was not even found in pilot programs.
• This system requires strong infrastructure and monitoring in order to correctly identify the beneficiaries and avoid fraud.

Political Challenges

• Most of the policymakers fear this scheme might be economically nonviable, hence not being very beneficial for current welfare schemes.
• The US Universal Basic Income (UBI) proposal 2025 is an ambitious effort to reduce income inequality, provide economic security and balance the losses caused by automation. Its cost and political support are its major challenges, however. It can bring about a huge change in the lives of millions of Americans if implemented. Now, it remains to be seen what decision the US Congress takes on this proposal.