With nearly 38 million Americans living in poverty, policy makers and advocates are looking for effective ways to help people struggling to pay their bills and provide for their families. One strategy that is receiving a lot of attention lately is guaranteed income programs which provide recurring cash payments – with no strings attached – to a targeted group of people.
Guaranteed income programs can help those in need quickly and can fill in the gaps in the existing social safety net. Internationally, they have consistently shown positive outcomes for individuals and families. From reducing stress and improving mental health in Finland, to boosting education and entrepreneurship in Kenya, these initiatives have enhanced overall well-being and economic stability.
I’ve had the honor to meet with and learn from people who have benefited from such programs. In Uganda, I met a young girl who had nearly lost hope of completing her education. Her family struggled to make ends meet and school fees were an insurmountable barrier. But thanks to a modest cash support program, Namazzi finished secondary school – becoming the first in her family to do so.
Halfway across the world, in Iraq, I witnessed a similar transformation. A Yazidi woman who had returned to her war-torn homeland with little more than determination used the cash assistance she received to open a small business. Today, that business is thriving, serving her community and restoring her sense of purpose.
Cash assistance without conditions such as work requirements has been controversial in the U.S. A pilot program in Stockton, California was among the first to get widespread national media attention. But the number of pilot programs skyrocketed in the wake of widening income inequality during the COVID-19 pandemic, when aid including emergency rental payments and stimulus checks made a marked difference in the lives of many Americans.
L.A. is leading the way on guaranteed income pilots
I recently attended an exciting summit on the progress and transformative potential of the guaranteed income projects taking place in Los Angeles County. L.A. is a national leader, with over a dozen cities and the county itself implementing diverse pilot programs targeting low-income adults, former foster youth, and parents of young children.
Leaders in government and philanthropy shared the latest research and evaluations of programs which have shown positive results and increased investment. For example, the City of Los Angeles – where one in five residents and close to a third of all children live in poverty – is home to one of the largest domestic guaranteed income pilots. L.A.’s BIG:LEAP (Basic Income Guaranteed: Los Angeles Economic Assistance Pilot) provided $1,000 per month for 12 months to 3,200 households.
Researchers shared their hot-off-the-press results of their study on the BIG:LEAP pilot, finding recipients were more likely to “save for the future, improve their financial well-being, have sufficient food, reduce their housing cost burdens, reduce stress [and] maintain their physical health.”
In addition, residents who received guaranteed income were significantly more likely to find full-time employment and enroll their kids in after-school sports and enrichment activities, when compared to a control group. Notably, they were also able to leave abusive relationships, reducing intimate partner violence. (Read the report by the Center for Guaranteed Income Research.)
The Conrad N. Hilton Foundation is deeply committed to supporting the evaluation of and learning from guaranteed income projects. We are funding the evaluation of LA County’s Breathe pilot, which enrolled 1,000 participants to receive $1,000 a month for three years, and later added 200 former L.A. County foster youth who will receive $1,000 per month for two years.
The program’s name conveys that recipients will have a chance to ‘breathe easier’ when it comes to their finances, reducing their stress and allowing them time to complete education and job training that may have been deferred, as well as more time to fully participate in their communities.
Researchers at the summit presented some early data from Breathe, finding the additional income is primarily spent on food, groceries, and household goods, reducing economic stress for participants. The initial results are compelling, and L.A. County Supervisor Holly Mitchell announced during the summit that the program will expand to serve 2,000 foster youth.
Additional opportunities for learning
The Hilton Foundation is also funding evaluations of:
In addition to the evaluations of these pilot programs, the Foundation supports the Guaranteed Income Learning Collaborative, which coordinates research across 12 pilot programs to build a robust evidence base for policy makers.
By embracing and advancing these initiatives, California will lead the nation in innovative social policy, addressing deep-rooted inequities and systemic injustices. These promising results help us better understand innovative policies that can alleviate economic hardship and promote holistic community development, creating a more equitable and just society.
Sonia Moldovan is Vice President, Strategy and Program at the Conrad N. Hilton Foundation