Question: How much would it cost to run the ARISE program with a new set of participants every two years? (Vice Mayor Bagley, Councilman Aguirre)

Response: 

Alexandria Recurring Income for Success and Equity (ARISE) is a guaranteed income project that provides 170 households with $500 per month for 29 months. 

ARISE was originally funded by a $3 million dollar budget from the city’s American Rescue Plan Act (ARPA) allocation and appropriated by the City Council. In the fiscal year 2025 budget process, City Council voted to budget an additional $550,000 of general fund dollars to extend the payments to participants for an additional five months, to continue through fiscal year 2025. The first payment went out to participants on February 15, 2023, and the final payment will go out on June 1, 2025. 

Costs for New Participants: 

The cost scenarios for operating the ARISE program with new participants every two years have been carefully considered. These scenarios consider the one-year ARISE evaluation findings and the challenges of Alexandria’s high cost of living, ensuring a comprehensive understanding of the financial implications. For consideration, the number of households reflected are 100, 170, and 200 and the amount of cash assistance are both $500 and $850. 

The current financial distribution partner, Mobility Capital Finance (MoCaFi), charges 4% of total funds disbursed and provides a debit card-style payment platform. Participants do not need to open a bank account or link the card to an existing bank account. They can withdraw the cash fee-free at any AllPoint ATM located conveniently across the City. Also, the distribution partner hosts a 24/7 call center that operates in over 200 languages to support participants' customer service needs, from canceling a lost card to ordering a replacement card and checking balances. 

The Operations Costs cover 50% of two FTEs, the Economic Mobility Program Officer and a Coach.  The Program Officer is responsible for administering the program, providing technical assistance to apply the economic mobility learnings across the system.  The Coach works directly with participants to support their goals through coaching and resource navigation. Operations and Program Costs also cover $32,000 in translation and interpretation costs to conduct inclusive outreach and communications.  

One hundred and seventy (170) participants were randomly selected from the applicant pool of just over 4,000 people. City residents 18 years or older with a household income at or below 50% Area Median Income were eligible to apply. Aligned with the principles of guaranteed income, participants can spend the money however they’d like, with no strings attached. The goal is that guaranteed income supplements existing social safety support programs and services rather than replaces them; therefore, ARISE staff secured waivers for Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Medicaid, Low Income Housing Energy Assistance Program (LIHEAP), childcare subsidies, as well as city means-tested programs. Participants have access and are connected to supportive services available to the general public.  

Research: 

The funding included an allocation to conduct a mixed method, Randomized Control Trial (RCT) evaluation with the 170 participants (treatment) and 210 applicants (control group) in partnership with Abt Global. The one-year interim report was delivered in September 2024 and is currently available on the City’s website. The final report will be delivered in February 2026.  

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