The idea of guaranteed income has a long history but its modern, progressive origins in the U.S. are rooted in the racial and gender justice movements of the 1960s. Guaranteed income (GI) is a cash payment provided on a regular basis to members of a community with no strings attached and no work requirements. The pandemic showed us that cash can mitigate economic precarity, bolster family incomes, and prevent poverty. Between pandemic stimulus checks, the expanded Child Tax Credit, and the expanded Earned Income Tax Credit, the U.S. government provided nearly $1 trillion in direct, unrestricted cash payments to individuals. These efforts moved 11.7 million people out of poverty.

In recent years, GI programs have launched around the US at a record pace spurred by heightened economic precarity brought on by COVID and deepening interest in addressing root causes of economic inequities. There are now over 70 mayor-led GI pilots in the US, which are part of the Mayors for Guaranteed Income movement created by former mayor of Stockton Mayor Michael Tubbs, who launched the first mayoral-led GI initiative in California - Stockton Economic Empowerment Demonstration (SEED). Research on early pilots like SEED showed that GI reduces month-to-month income volatility, which increases participants’ financial security, opportunities for self-determination, and improves emotional health. It also improves employment, as well as people’s ability to cover unexpected expenses.  There are also anecdotal cases where individuals have been able to increase their assets by paying down debt or purchasing a home.

To capitalize on the growing funder interest in GI, Asset Funders Network (AFN), Economic Security Project (ESP), Springboard to Opportunity and the Center for High Impact Philanthropy at the University of Pennsylvania co-produced a primer to highlight strategic investments funders can make to advance evidence-based GI solutions, which include funding:

  • Direct service efforts to test and refine what a scaled-up program could look like;
  • System and capacity-building efforts that build the broader field;
  • Policy and advocacy to ensure the long-term political viability of cash-based policies;
  • Research and innovation to build evidence and strengthen the case for cash.

Read the full article about guaranteed income by Mona Masri and Leah Greenberg at Northern California Grantmakers.