Guaranteed income programs are gaining traction nationwide to combat poverty and provide financial stability for families.
Across the country, many local governments and states are experimenting with guaranteed income programs. These programs are cash payments aimed at addressing poverty. Counties and municipalities’ programs vary greatly. More than 100 local governments are planning to launch these initiatives. Baltimore City, Montgomery, and Prince George’s County have implemented guaranteed income programs.
Opponents of these programs argue that they will not effectively pull recipients out of poverty in the long run. Opposition has highlighted the need for more trials and data collection in this research space. Research shows these programs deliver promising results, and federal lawmakers are noticing. One standout example is in Shreveport, Louisiana, where a guaranteed income initiative provided 110 single-parent families with $660 per month for a year. According to a Mayors for a Guaranteed Income study, participants saw reduced food insecurity. Many could use the payments to cover essential costs like school uniforms and supplies for their children.
As previously covered by MACo, Baltimore City’s program provides 200 parents between 18 and 24 with an unconditional cash payment of $1,000 per month over 24 months. From previous Conduit Street coverage:
Eligible participants must also have an income below 300 percent of the federal poverty level based on their household size. Selections were made through a randomized lottery. $4.8M in American Rescue Plan Act funding will be directly distributed to the recipients, while the program’s administration budget of $500,000 over three years is being funded mainly by philanthropic partners and $100,000 from the Mayor’s Office of Children & Family Success.
In Montgomery County, the MoCo BOOST program estimated a cost of $6.3M over two years and to fund 300 households with $800 per month for 24 months. Prince George’s County also tested out a universal basic income program. As previously covered by MACo, funding for the Prince George’s program came through during the county’s FY24 budget process. This program allocates $2M to be paired with another $2M from community organizations.
As local programs expand, states are beginning to implement statewide programs. California was the first state to fund a guaranteed income program in 2021, followed by Minnesota. The federal government has introduced legislation. US Rep. Morgan McGarvey introduced the Young Adult Tax Credit Act in early 2024 to help young adults aged 18-24 build wealth and cover basic needs like housing.
By learning from local pilots, the federal government could craft policies that offer more families the financial stability they need to thrive.
