A new wave of cities is testing programs that give their residents free money every month, with no strings attached.
Often called guaranteed income or universal basic income, these types of programs differ from other U.S. government benefits in that they tend to provide low-income people with direct cash payments with few or no stipulations on how to spend the money.
“Programs like this limit bureaucracy,” says Dr. Mona Hanna-Attisha, a pediatrician and professor at Michigan State University who directs a year-long universal income program for Flint mothers called Rx Kids.
“They are efficient; they are effective,” he adds. “They allow families to have freedom of choice in deciding how best to make ends meet.”
While not a new idea, cash-pay programs like Flint’s have begun to gain traction in the United States since the pandemic, with dozens of cities from coast to coast testing them. Big cities like Baltimore, Chicago, Houston and Sacramento have signed on.
Many of the initiatives are at least partially funded by the pandemic-era American Rescue Plan and are loosely modeled after the poverty-eradicating effectiveness of stimulus checks and expanded child tax credits. Numerous international studies suggest that giving direct money to needy families is one of the best ways to reduce poverty. But until recently, the United States had largely avoided welfare based on direct payments.
6 places that give residents free money, no strings attached
As of 2024, there are at least six major programs in effect across the United States, spanning dozens of cities, and more are in the works. Here’s a look at how and where these programs operate.
1. Baltimore
Residential redlining and racial segregation in Baltimore left a legacy of inequality that is present to this day. By launching a pilot program to give young, low-income parents $1,000 payments each month, Baltimore Mayor Brandon Scott said he hopes to solve some of these long-standing problems.
Launching in 2022, the Baltimore Young Families Success Fund pilot program provides 200 parents ages 18 to 24 with $1,000 monthly payments for two years. Final payments are expected to arrive by the end of the summer. Funding comes from leftover money from the American Rescue Plan and philanthropic efforts.
To some participants in the program, which is in partnership with the Shaquille O’Neal-backed Steady app, it initially seemed too good to be true. Program leaders said some Baltimore skeptics “even thought it was a scam.” Away from it. The pilot program is on track to invest nearly $5 million in young Baltimore parents.
Research firm Abt Global and Johns Hopkins University in Baltimore are teaming up to assess the mental, physical and financial health of families involved in the pilot project to help the city decide whether to expand the program.
2. Cook County, Illinois
Notably, Chicago’s Cook County has been running a guaranteed income program since December 2022 with payments running through the end of 2024.
Known as the Promise Program, the pilot is using $42 million in American Rescue Plan funds to give 3,250 low- and moderate-income families cash payments of $500 a month over a two-year period, for a total of $12,000.
According to local officials, more than 200,000 families applied and participants were chosen through a lottery system. Excluding income from the program, the average earnings of those who participated in the pilot is $21,000. And even though the participants did not have to be parents, almost 60% of those selected have children.
The University of Chicago is conducting a pilot test study, including a control group of 3,250 families Not receive a guaranteed income for comparison. Depending on the results, Cook County Chair Toni Preckwinkle said the program could continue in future years.
3. Flint, Michigan
Following the Flint contaminated water crisis a decade ago, the devastating effects of poverty and inequality in small-town Michigan have gained immeasurable national attention.
The quagmire has spurred some local officials and advocates into action. One such advocate is Dr. Hanna-Attisha of Rx Kids, who helped uncover Flint’s water crisis and lead recovery efforts.
Now she’s in Flint leading the nation’s largest guaranteed income project for mothers.
“This is not a pilot,” he says. “Rx Kids is a universal program.”
Starting in January, any mother (or primary caregiver) of a newborn in the city of Flint can join the program, which provides $500 a month for the first year of the child’s life. On top of these monthly payments, expectant mothers receive a lump-sum payment of $1,500 after reaching the 20-week threshold of pregnancy, with no income requirements or restrictions on how to use the money.
The funds also follow the child, Hanna-Attisha says, meaning that if a child is adopted or left with a new caregiver, the new guardian receives the help.
So far, the program has raised $55 million through philanthropic efforts, American Rescue Plan funds and, most importantly, redirected money from the city’s Temporary Assistance for Needy Families (TANF) program.
Better known simply as welfare, TANF is a federal assistance program already in place across the country. By repurposing the funds to assist low-income residents with newborns, Hanna-Attisha says the program in Flint can be replicated across the country.
And that just might be the case: Michigan officials are preparing to expand the program to Detroit, Kalamazoo, Saginaw, Benton Harbor and parts of the Upper Peninsula. Flint’s program has also caught the attention of congressional lawmakers Sen. Gary Peters, D-Mich., and Rep. Dan Kildee, D-Mich., who are eager to propose a federal version.
4. Harris County, Texas
In Harris County, Texas, more than 15 percent of the population is in poverty, and local officials are experimenting with ways to reduce it.
Uplift Harris, an 18-month pilot program offering nearly 2,000 county residents cash payments of $500 a month, could be the answer.
Not everyone in Harris County, which includes Houston and dozens of other cities, can opt in. Only low-income residents from 10 select zip codes will be eligible by the end of the month. To be included, residents’ household income cannot exceed 200% of the federal poverty line.
Unlike similar programs, Uplift Harris is entirely funded by US Federal Rescue Plan dollars, with $20.5 million earmarked for the pilot project. The first payments are expected to be made in early April.
Harris County Commissioner Rodney Ellis, a Democrat, said Wall Street Journal who hopes the program lays the foundation for a larger, more permanent one. However, his future is uncertain as some Texas Republicans are attempting to stop Uplift Harris by asking the state attorney general to block him.
5. Sacramento County, California
Since 2021, some low-income Sacramento County residents have been receiving monthly payments to help them cover daily needs.
The county includes Sacramento City, Citrus Heights, Folsom and several other cities.
The first version of the county’s guaranteed income program, in partnership with the nonprofit United Way, paid $300 a month to 100 families. Subsequent rounds of the pilot brought in $500 a month. Since its inception, the program has assisted 310 low-income families in the area.
The latest group of participants began receiving monthly payments in January and will last 12 months.
Funding for the guaranteed income pilot comes from the American Rescue Plan and grants from the Sierra Health Foundation.
Sacramento State University is contracted to study the program’s effectiveness. Initial reports on the first two iterations have already been published. Initial results show that 91% of people would not be able to afford an unexpected expense of $400 before joining. By participating in the program, three-quarters said they were now confident they could achieve their financial goals.
6. Pierce County, Washington
Starting in April, Piece County is expanding its Growing Resilience in Tacoma (GRIT) program.
As the name suggests, the program primarily serves Tacoma, Washington, but may include residents of nearby Parkland, Midland, Summit, Spanaway and Frederickson.
The program is limited to low-income, single heads of households with children. It will provide 130 parents with payments of $500 a month for a year, $6,000 in total. The money is “unconditional and without restrictions”.
“This project is designed to demonstrate that this type of cash investment can reduce feelings of overwhelm and toxic stress, improve economic stability, increase housing security, and improve health and well-being by reducing poverty in our community,” yes reads in the question.
The first version of GRIT was a 13-month program that began in December 2021. That program was widely considered a success, and the county is doubling down on its efforts. Both versions of the program are trials conducted by the Center for Guaranteed Income Research at the University of Pennsylvania and in collaboration with United Way.
“It has changed my home for the better,” one participant in the 2021 program told researchers. “I have felt much less stressed month after month since this program started.”
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