What is Guaranteed Basic Income?

Guaranteed Basic Income programs provide individuals or households with regular, unconditional, and unrestricted cash payments intended to support the basic needs of the recipients and their families.

Background

In Los Angeles County 16 percent of the population lives below the poverty line, this number is higher than the national average of 13 percent. In a 2020 study conducted by the Social Change Institute of Rising Communities formerly known as Community Health Councils (CHC) researchers found that 85 percent of mothers found themselves short on income for the month at some point in the year resulting in 77 percent of respondents expressing that income shortages impacted their mental health at least some of the time. The median reported monthly shortage was $443.00 and the range of shortages was from $50 to $2,000. Of the respondents, most mothers were most frequently worried about bills, unexpected expenses, debt, COVID-19, job loss and the financial and emotional well-being of their children. 

Purpose

To implement a GBI pilot program (Mothers Rising for Guaranteed Basic Income) for mothers in South LA to assess the impact a guaranteed income has on the mental and physical health of the mother and her children. Additionally, this project will study the impact guaranteed income has on a mother’s ability to improve the wealth condition of her family by having access to financial products such as life insurance, emergency savings, college savings, credit products, homeownership, and tax counseling. Finally, this project will study the impact wealth building for mothers has on the community ecosystem where she resides.

Mothers Rising for Guaranteed Basic Income

Set up a three-year GBI pilot program to provide a guaranteed monthly income to 100 mothers in South LA

Provide $500 monthly to offset the average amount that mothers are short each month

Offer childcare, educational opportunities, financial literacy, education, and access to low-to-no- cost banking products that will build the financial profile of each participant.

Benefits of GBI

While many of the existing GBI programs have been pilot projects, some of the findings from these programs indicate that:

Recipients saw an improvement in health and a reduction in depression and anxiety

Most of the money is spent on basic needs such as food, rent, and utilities

GBI provides a baseline for financial security and enables recipients to find full-time employment

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