CAMBRIDGE GUARANTEED INCOME PILOT SHOWS INCREASED FINANCIAL STABILITY, HIGHER EMPLOYMENT AND BETTER EDUCATIONAL OUTCOMES FOR CHILDREN

Parents, caregivers and children see tangible benefits with $500 monthly guaranteed income

CAMBRIDGE, Mass., March 27, 2024 /PRNewswire/ -- Today, Mayors for Guaranteed Income, Councillor and former Mayor Sumbul Siddiqui, and a wide-range of project partners welcomed the release of independent data on the Cambridge RISE Guaranteed Income Program, showcasing significant improvements in financial health, higher rates of employment, increased time and space for parentings, and better educational outcomes for children.

The cross-sector pilot, entirely funded by philanthropic dollars, provided a monthly payment of $500 to 130 families for 18 months, beginning in September 2021. Cambridge residents ages 18 and older were eligible to participate in RISE if they had incomes below 80% of the Area Median Income and were single caregivers with at least one child under the age of 18. Researchers randomly selected 130 participants to receive $500 monthly cash payments for 18 months, and they measured participant impact against a randomized control group of 156 similar residents who did not receive payments.

Key findings include:

• Higher employment — Researchers found statistically significant differences in full-time employment, with the recipients having increased their employment rate from 36% at baseline to 40% after 12 months, while employment fell amongst the control group from 30% at baseline to 28% one year later. Recipients also had higher rates of part-time and seasonal employment.
• Improved financial health — On average, recipients of the guaranteed income reported higher incomes and lower income volatility and were better able to cover a $400 emergency expense compared to a control group of similar Cambridge residents who did not receive the direct cash.
• Enhanced housing, utility, and food security — By the end of RISE, the treatment group experienced a lower housing cost burden, more stable utility costs, and higher food security compared to the control group.
• Increased time and space for parenting — Guaranteed income allowed recipients to give more attention and support to their children, who in turn experienced improved educational outcomes compared to similar families without the direct cash.

Councillor Sumbul Siddiqui, who initiated the program as Mayor, said "The findings from the RISE pilot highlight the impact of guaranteed income on the lives of single caregivers in Cambridge. By providing direct cash, we've not only strengthened financial health but also empowered families to thrive. As we move forward with Rise Up, we renew our dedication to building a more resilient and inclusive community."

One participant in the RISE pilot explained the benefit, stating, "This [guaranteed income] it's not just benefiting me, it's benefiting my daughter. So I'm able to show her things and we're able to do things together … and that puts her in a different place growing up. She gets to see these things. I get to show her things and that betters her."

Tina Alu, Executive Director of Cambridge Economic Opportunity Committee (CEOC), said, "This research validates what we have learned from the participants that we see every day at CEOC: guaranteed income has an incredibly positive impact on their financial well-being and quality of life. These kinds of programs need to continue."

The RISE pilot launched in partnership with the Cambridge Community Foundation (CCF), CEOC, and UpTogether, was supported by additional partners who shared the belief in guaranteed income as a means to stabilize families in poverty. The program benefitted from lead support from Mayors for a Guaranteed Income, Harvard University, MIT, CCF and many other donors, and programmatic support from Just a Start, Mass Law Reform Institute, and Cambridge Housing Authority.

"Cambridge RISE was an excellent example of collective action," said Geeta Pradhan, president of the Cambridge Community Foundation. "The deep partnership between the public, philanthropic, and nonprofit sectors combined the individual strengths of each to benefit families at a time of great need. It also paved the way for a powerful program scaled and the opportunity for a pathbreaking learning agenda on how to use trust-based approaches like unconditional cash to help families move from crisis to stability."

In July 2023, the City of Cambridge launched a scaled cash assistance program city-wide–the first in the nation available to everyone who qualifies–providing $500 direct cash for 18 months to approximately 2,000 families experiencing poverty. This second phase, called Rise Up Cambridge, is funded with American Rescue Plan Act funds.

"On the heels of President Biden calling for the return of the expanded Child Tax Credit, we have evidence from Cambridge RISE that guaranteed income tangibly improves the lives of parents and children," said Michael D. Tubbs, founder of Mayors for a Guaranteed Income. "Republicans in red states are rushing to ban guaranteed income precisely because it works–and once people see it for themselves, there's no turning back. Polling data proves that, with the majority of Americans now supporting a federal guaranteed income. Cambridge is a leader and part of a growing body of evidence that guaranteed income can make our families, communities and nation stronger and more resilient."

Cambridge's pilot is affiliated with Mayors for a Guaranteed Income, a coalition of nearly 150 mayors and growing. The research findings from Cambridge build upon similar results from the mayor-led guaranteed income programs in Stockton, CA, Saint Paul, Minnesota, and Paterson, NJ, where researchers found statistically significant gains in employment, financial stability, mental health, and overall well-being.

Read the full report on the Cambridge RISE Guaranteed Income program here.

Founded in June of 2020 by former Stockton Mayor Michael Tubbs, Mayors for a Guaranteed Income is a coalition of nearly 150 mayors committed to advancing a federal guaranteed income – direct, recurring cash payments to middle and low-income people. Expanding to include city and county legislators in 2023 with Counties for a Guaranteed Income, the network acts as a research and resource hub for municipal pilots around the country–nearly 60 and counting. A new documentary film, It's Basic, which premiered at the Tribeca Film Festival in June 2023, follows recipients and illuminates the life-changing impact of guaranteed income programs on families' economic security and opportunity.

SOURCE Mayors for a Guaranteed Income