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Red states fight growing efforts to give 'basic income' cash to residents

Kevin Hardy, Stateline.org on

Published in News & Features

In Colorado, the Denver Basic Income Project aimed to help homeless individuals. After early successes, the Denver City Council awarded funding late last year to extend that program, which provides up to $1,000 per month to hundreds of participants.

A 2021 pilot launched in Cambridge, Massachusetts, provided $500 a month over 18 months to 130 single caregivers. Research from the University of Pennsylvania found the Cambridge program increased employment, the ability to cover a $400 emergency expense, and food and housing security among participants.

Children in participating families were more likely to enroll in Advanced Placement courses, earned higher grades and had reduced absenteeism.

“It was really reaffirming to hear that when families are not stressed out, they are able to actually do much better,” said Geeta Pradhan, president of the Cambridge Community Foundation, which worked on the project.

Pradhan said basic income programs are part of a national trend in “trust-based philanthropy,” which empowers individuals rather than imposing top-down solutions to fight poverty.

“There is something that I think it does to people’s sense of empowerment, a sense of agency, the freedom that you feel,” she said. “I think that there’s some very important aspects of humanity that are built into these programs.”

While the pilot concluded, the Cambridge City Council committed $22 million in federal pandemic aid toward a second round of funding. Now, nearly 2,000 families earning at or below 250% of the federal poverty level are receiving $500 monthly payments, said Sumbul Siddiqui, a city council member.

Siddiqui, a Democrat, pushed for the original pilot when she was mayor during the pandemic. While she said the program has proven successful, it’s unclear whether the city can find a sustainable source of funding to keep it going long term.

States look to expand pilots

Tomas Vargas Jr. was among the 125 people who benefited from the Stockton, California, basic income program that launched in 2019.

At the time, he heard plenty of criticism from people who said beneficiaries would blow their funds on drugs and alcohol or quit their jobs.

“Off of $500 a month, which amazed me,” said Vargas, who worked part time at UPS.

But he said the cash gave him breathing room. He had felt stuck at his job, but the extra money gave him the freedom to take time off to interview for better jobs.

Unlike other social service programs like food stamps, he didn’t have to worry about losing out if his income went up incrementally. The cash allowed him to be a better father, he said, as well as improved his confidence and mental health.

 

The experience prompted him to get into the nonprofit sector. Financially stable, he now works at Mayors for a Guaranteed Income.

“The person I was five years ago is not the person that I am now,” he said.

Washington state Sen. Claire Wilson, a Democrat, said basic income is a proactive way to disrupt the status quo maintained by other anti-poverty efforts.

“I have a belief that our systems in our country have never been put in place to get people out of them,” she said. “They kept people right where they are.”

Wilson chairs the Human Services Committee, which considered a basic income bill this session that would have created a pilot program to offer 7,500 people a monthly amount equivalent to the fair market rent for a two-bedroom apartment in their area.

The basic income bill didn’t progress during Washington’s short legislative session this year, but Wilson said lawmakers would reconsider the idea next year. While she champions the concept, she said there’s a lot of work to be done convincing skeptics.

In Minnesota, where lawmakers are considering a $100 million statewide basic income pilot program, some Republicans balked at the concept of free cash and its cost to taxpayers.

“Just the cost alone should be a concern,” Republican state Rep. Jon Koznick said during a committee meeting this month.

State Rep. Athena Hollins, a Democrat who sponsored the legislation, acknowledged the hefty request, but said backers would support a scaled-down version and “thought it was really important to get this conversation started.”

Much of the conversation in committee centered on local programs in cities such as Minneapolis and St. Paul. St. Paul Mayor Melvin Carter, a Democrat, told lawmakers the city’s 2020 pilot saw “groundbreaking” results.

After scraping by for years, some families were able to put money into savings for the first time, he said. Families experienced less anxiety and depression. And the pilot disproved the “disparaging tropes” from critics about people living in poverty, the mayor said.

Carter told lawmakers that the complex issue of economic insecurity demands statewide solutions.

“I am well aware that the policy we’re proposing today is a departure from what we’re all used to,” he said. “In fact, that’s one of my favorite things about it.”


©2024 States Newsroom. Visit at stateline.org. Distributed by Tribune Content Agency, LLC.

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