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A new report finds that the city of Alameda’s guaranteed income pilot program has been effective in helping low-income participants handle unexpected expenses and improve overall well-being.
The program launched in September 2023 and provides $1,000 per month to about 150 low-income households over the course of two years.
The city allocated $4.6 million from the American Rescue Plan Act of 2021 to fund the pilot, with $3.6 million directed toward cash payments.
The pilot’s research partner, Abt Global, surveyed participants to measure the program’s effectiveness. The 150 participants were selected by lottery. They reported an average household income of $31,836, an average age of 49, and most said they used public benefits like housing assistance.
Researchers compared participants with people who did not receive program payments. After one year, Rise Up participants reported significant improvements in financial stability, mental health and sense of community, with no negative effect on employment.
Participants were more likely to handle a $400 emergency and were also twice as likely to have $500 or more saved. Only 15% said they were going into debt compared to the 42% of people who weren’t in the program. They were more likely to have money left over at the end of the month.
Rise Up participants reported lower stress, greater hopefulness and an improved sense of belonging. They were also likely to be involved in community activities, such as parent groups, religious or social clubs and professional associations.
The study found no significant improvements in housing outcomes.
Payments under Rise Up Alameda were higher than many national guaranteed income programs. Abt said the results are encouraging because they showed better outcomes than most pilot programs.
A detailed two-year report is expected after the pilot ends in December.
This post was originally published on Basic Income Today.