$1,000 Monthly Payments Test Basic Income Approach to Preventing Homelessness in the Bay Area

According to The Business Journals, Google is funding a new experiment in the Bay Area to see how basic income affects families facing homelessness. The initiative called “It All Adds Up” or the Bay Area Thriving Families Study gives selected families monthly payments of up to $1,000 to help them stay in stable housing. This pilot project which started in November is backed by Google and other organizations like the Abdul Latif Jameel Poverty Action Lab (J-PAL). The project focuses on families who have recently moved out of rapid re-housing programs which provide temporary rental assistance and support. Researchers hope that by giving these families extra money they will be able to maintain their housing stability better than those who don’t receive the additional cash.

Families are chosen randomly to either receive $1,000 a month or $50 a month as part of a control group. The study will track their progress over five years including their financial health, housing stability and overall well-being. The goal is to see if the basic income helps families stay housed and improves their quality of life. Since 2022 the number of unhoused families in San Francisco has surged with many families living in vehicles or facing severe hardships. This increase is partly due to job losses from the pandemic the end of eviction moratoriums and new migrant families arriving with limited resources. The pilot aims to test a new way to address these challenges. So far 55 families are enrolled and early findings suggest they use the extra money primarily for food, car repairs, and other essential expenses. The flexible nature of basic income allows families to spend the money according to their most urgent needs.

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$1,000 Monthly Payments Test Basic Income Approach to Preventing Homelessness in the Bay Area (PHOTO: The Business Journals)

Furthermore, critics argue that basic income might discourage work and waste taxpayer money. However, supporters believe that preventing homelessness is more cost-effective than dealing with the fallout of homelessness later on. San Francisco Mayor London Breed has proposed additional funding to tackle family homelessness but many service providers are still struggling to meet the growing demand. The research will help determine if basic income could be a valuable tool in preventing homelessness and improving the lives of vulnerable families.

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