Young parents who received $1,000 monthly cash payments through Baltimore City’s guaranteed income pilot reported lower rates of food insecurity, household chaos, missed work, and stress during the two-year program – and many benefits persisted after the end of the pilot period.
The Baltimore Young Families Success Fund provided unconditional cash payments over 24 months from August 2022 to July 2024 to parents or guardians between 18-24 years old whose incomes were at or below 300% of the federal poverty level for their household size.
Of more than 4,000 individuals who applied for the pilot program, 130 were randomly selected and given the guaranteed income. Another 156 applicants were randomly selected to serve as a control group and did not receive the cash payments.
The pilot program was funded by $4.8 million from the federal American Rescue Plan Act.
Researchers conducted follow-up surveys with program participants every six months, starting six months after the first cash payment, and ending at the 30-month mark (six months after the pilot’s conclusion). They also interviewed 27 participants in greater depth between November 2023 and February 2024.
Eighteen months into the pilot, 56% of guaranteed income recipients reported being food insecure, compared to 72% of the control group members. Six months after the end of the pilot program, the households who received the cash payments were 20 percentage points less likely to be experiencing food insecurity.
Some guaranteed income recipients said they had faced housing instability and 37% had to live with relatives and friends before receiving the cash payments. But by the end of the pilot, that number had dropped to 23% – and after payments had ceased, the percentage dipped even further to 19%.
Many used the money to pay for housing deposits or moving expenses, with some being able to leave abusive situations.
A pair of Baltimore parents with one child could expect to pay $12,000 for child care in 2024 – nearly the entire annual income ($14,000) of the average participant in the guaranteed income pilot. The high cost meant child care was out of reach for many families.
But many guaranteed income recipients were able to use the money to pay for a child care provider.
The report found that increased access to child care may have alleviated issues at work. Cash recipients reported missing on average 9 fewer hours of work in the past month by the end of the 24-month pilot, compared to the control group.
To read the full report, click here.
So we needed a study and a control group to tell everyone something obvious! If you dont have money you will be food insecure seems like something we should already know!