Over a year after the “Basic Income Guaranteed: Los Angeles Economic Assistance Pilot program” concluded, the results are finally in. During BIG:LEAP’s Run, 3,202 low-income persons received $1,000 a month with no strings attached over the course of a year, totaling $12,000, to use however they saw fit.
The Benefits Are Clear
The data speaks for itself. Researchers and council members observed increased financial well-being among participants, food security rose, parents spent more time with children, levels of abuse lowered, and an overall sense of community was established. With these promising results, some officials have expressed interest in expanding the program.
Participants were almost all in deep poverty, struggling to meet their basic needs and pay the bills. The average income for the households in the program was about $14,200, the average applicant was 37 years old, most households had children, and 80% of applicants were women.
How Participants Used This Resource
Researchers at UCLA, USC, and the Center for Guaranteed Income Research found several areas in which the participants used their newfound income to improve their lives.
Most people in the program prioritized savings, but they also expressed comfort in being able to pay off emergency expenses, which would have been a devastating hit without this added resource. Only 10% of participants were confident that they could cover an emergency expense before joining the program, growing to 15% when the program ended.
Escaping Abuse
A majority of participants reported psychological abuse from partners before joining the program, while 30% reported physical abuse. Stalking, aggression, and violence were able to be avoided with a boost in income, providing previously inaccessible avenues for escaping unsafe relationships they may have otherwise been reliant upon, and they were able to begin healing.
Becoming Better Parents
People were becoming better parents in the program. They could afford to take a few days off to be with their children and had extra spending money to celebrate birthdays. Parents were more willing to put their kids into enrichment programs, extracurriculars, and sports programs which would have otherwise been prohibitively expensive. This small investment helps parents provide better lives for their children, and they seem eager to do so.
Improving Health
Some participants reported taking walks and being able to afford healthier food options for their children. Many children in low-income families have health issues that require better quality food which their families may not be able to afford in their position. This program helped them improve their children’s lives.
Housing Costs and Food Security
Half of the participants spent more than 70% on housing expenses, but the added funding helped them to more easily meet payments and avoid homelessness, something which Los Angeles has been struggling to find a real answer to. By alleviating these payments, those who received guaranteed income had an easier time finding food, while 44% of low-income persons in LA County struggled to put dinner on the table.
Next Steps
Councilmember Curren Price, who spearheaded the effort, believes they cannot stop now. The program has momentum, and the benefits are having an impact. If approved, his motion to launch a $4-5 million guaranteed basic income program would target those experiencing intimate partner violence, domestic violence, and young people aging out of foster care. Price himself will provide $1 million of his own district’s discretionary funds to the effort to help those experiencing homelessness.
“We will move forward, we will guarantee income,” Price said. “That’s been proven to break cycles of poverty and housing insecurity, and these are issues that have plagued our region for decades, and now we have research to show that it can be alleviated.”
