Cities Pay Up To $20,000 To Fix Population Decline With Remote Workers

Cumberland, Maryland, is offering $20,000 to each of ten new residents who agree to relocate there, a move designed to reverse a decades-long population decline. The city, located roughly 130 miles from Washington, D.C., launched the pilot program called Choose Cumberland. Mayor Ray Morriss stated that the goal is to attract workers who can bring their jobs with them, noting that the city’s population fell from over 40,000 to fewer than 19,000 after major manufacturing employers closed starting in the 1970s.

The cash package consists of $10,000 in immediate relocation funds and an additional $10,000 designated for a home down payment or approved renovations. Recipients must establish Cumberland as their primary residence for a minimum of five years. This strategy mirrors efforts in other communities that are competing for a growing pool of employees who can work from any location.

Tulsa, Oklahoma, began a similar initiative before the pandemic. The Tulsa Remote program provides $10,000 to remote workers who move to the city to rent or buy a home. Justin Harlan, the managing director of Tulsa Remote, explained that the program began as an experiment to diversify a workforce heavily dependent on the oil and gas industries. The number of participants has increased from approximately 70 in 2019 to more than 3,500.

Tulsa requires participants to reside in the city for only one year. Harlan said the program maintains a 90% retention rate beyond that initial period. He noted that 75% of all participants since 2019 are still living in Tulsa. The organization meets with new residents within their first 90 days to understand their needs and integrate them into the community.

Faith Langevin moved from Atlanta to Tulsa in 2022. She and her husband, also a remote worker, each received the $10,000 incentive. Langevin cited the lower cost of living and the social integration provided by the program as key factors in her decision. She described Tulsa as her home and expressed no regrets about the move three years later.

Evan Starr, an associate professor at the University of Maryland’s School of Business, studied the Tulsa Remote program to understand its impact on local demographics. He found the retention rate to be a key indicator of the program's effectiveness. Starr warned that cities should not attract residents solely for the financial incentive, as some may leave once residency restrictions expire. He believes remote work has created a new level of geographic mobility because employees are no longer tied to their employer's physical location.

In Cumberland, local businesses are adjusting to the influx of new neighbors. Gino Giatras, whose family has operated a hot dog shop in the city since 1918, welcomed the change. He cited the people, weather, and activities as reasons he loves the community. The city’s pilot program is currently accepting applications for the ten available spots.

More than 100 places across the United States are advertising cash offers to attract potential new residents, according to the website Make My Move. These programs represent a shift in how local governments compete for economic development in the post-pandemic era.