San Antonio experimented with giving people $5,108, no strings attached. They spent it on housing and school supplies for their kids.
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- San Antonio's basic-income pilot helped low-income families afford housing and other necessities.
- Participants received a total of $5,108 in no-strings payments over 25 months.
- Texas is a key state for income pilots, with programs also launching in Austin and Harris County.
When Monique Gonzalez received her money from the San Antonio guaranteed basic-income pilot, she bought school supplies, shoes, and Christmas gifts for her children.
The mother of six said the program allowed her to afford things her family had "put on the back burner" because they didn't have the money. Gonzalez told UpTogether — a national nonprofit that has sponsored a series of GBI programs — that basic income was what she needed to invest in her children's future.
San Antonio is one of several cities nationwide piloting guaranteed basic-income programs. For the most part, the programs offer no-strings-attached cash payments to low-income individuals over a set time period. Participants in cities such as Denver, Austin, Boston, Minneapolis, and Durham, North Carolina, have reported using the money to secure housing, afford transportation, buy groceries, pay off credit-card debt, and drop second jobs. Some programs, like the one in Denver, have been so successful that their funding was extended.
UpTogether oversaw San Antonio's pilot, investing $5,108 in each of the 1,000 individuals participating over a 25-month period. Program participants received an initial $1,908 payment in December 2020, followed by eight quarterly payments of $400 between April 2021 and January 2023. Participants had household incomes that fell below 150% of the federal poverty line — which is $46,800 for a family of four — and many were facing financial hardship because of the pandemic.
Funding for the program came from the city, foundations, and private funders.
UpTogether is running an additional income pilot that will end in December 2024. Twenty-five UpTogether participants, including Gonzalez, are receiving $500 a month for 18 months.
"We have more opportunities to be happy, content, and healthy," Gonzalez said."This helped to eliminate a lot of the stressors we have."
Shafeka Hashash, associate director of Guaranteed Income at the Economic Security Project, told Business Insider in May that pilot programs across the US show guaranteed income is an effective poverty solution.
GBI has been piloted over 100 times since 2019. In contrast to traditional social services like SNAP and rental assistance, basic income allows participants to choose to spend money where they need it most. And, Hashash said trusting families with no-strings cash assistance has far-reaching impacts.
"When you don't have this group of mothers whose babies are born into economic backslide, you inherently have a stronger community," she said. "When families receive a guaranteed income that improves their children's stability in the school system, you inherently have a stronger community."
San Antonio participants felt happier and more supported by basic income
Program leaders in San Antonio surveyed participants throughout their time in the program. Of the 182 participants who responded to a question asking them whether the cash payments had an overall positive impact on their lives, 161 answered affirmatively. Many said the money was critical for their daily survival and allowed them to cover expenses they otherwise couldn't afford.
Ingrid Sullivan, a participant with four children and three grandchildren, told UpTogether that basic income allowed her to secure housing and reliable transportation. She said the program allowed her to gain financial security with dignity and help pay for her family's needs.
"I felt supported for the first time ever," Sullivan said. "I didn't know what it felt like before this."
San Antonio participants also told UpTogether that the GBI payments significantly improved their mental health. Many survey respondents said they experienced chronic stress about money. With some of that financial worry alleviated, participants reported being able to spend more time with their families or in their communities and said they generally enjoyed life more.
For participants with families, many said their extra income went to enrolling their children in after-school and extracurricular activities and supporting their educations.
"I was able to do more at times because I was able to get my bills met," one survey respondent said. "In turn, I had extra money to be able to spend on my children to take them out or get them what they needed or wanted."
The San Antonio pilot also provided program leaders with feedback. In the survey, some participants said future income programs should provide payments monthly instead of quarterly and provide more opportunities for in-person connection with other participants and the community.
Texas is a national leader for income programs, but GBI continues to face opposition
Texas has been a major state for GBI pilots. Austin and Harris County — which includes Houston — have also launched pilot programs that distribute cash payments monthly.
In May 2022, the Austin Guaranteed Income Pilot began distributing $1,000 a month for one year to 135 low-income households using funding from the city and philanthropic donations. Austin was the first Texas city to launch a taxpayer-funded guaranteed-income program.
A report from the Urban Institute, a think tank based in Washington, DC, found that Austin GBI participants spent more than half of the money on housing, allowing some to purchase their first homes or more easily afford rent. After the yearlong program, participants also reported being more food secure: From a survey of 51 responses, the number of those unable to afford a balanced meal fell by 17 percent.
Stephanie Hendon was living in a shelter with her four kids while working long hours, but within a year of the program, she was able to rent a three-bedroom apartment, purchase a new car, buy clothes for her children, and get a new job. She said she's become more financially savvy and believes she's on the right path to financial stability while also being able to spend more time with her kids.
However, the program wasn't a major success for every participant. Jessica Nairns said the program helped her advance her career and buy essentials, though she was still unhoused a few months after the program. She said she's grateful for the temporary assistance she received, though she couldn't invest money for the long term or find more secure housing.
Harris County, where about 16% of residents live below the poverty line, will provide participants in its pilot program — which is set to start payments in April — with $500 a month for up to 18 months. Officials are pulling from over $20 million of federal COVID-19 relief to fund the Uplift Harris project, which has been met with some Republican opposition.
Uplift Harris participants were set to receive their first payments on April 24, but the program is under a temporary block after a lawsuit filed by state Attorney General Ken Paxton called the program "unconstitutional." The block will remain while the Texas Supreme Court decides if the program can proceed.
South Dakota lawmakers recently introduced a bill to preemptively ban all state and local income programs, which a bill sponsor called a "socialist idea" and "one-way ticket to government dependency." A similar ban has been proposed in Iowa.
In Arizona, GOP leaders are trying to pass another statewide ban. The Republican-led state House approved the GBI ban, and it will soon be taken up by the state Senate. Republicans say they are worried income programs will raise taxes and make people overly dependent on government assistance.
"Is money a birthright now? Do we just get born and get money from the government? Because I think the Founding Fathers would say that is very contrary to our capitalist system and encouraging people to work," John Gillette, a Republican state representative from Arizona, told Business Insider.
Despite legislative resistance, GBI programs continue to be launched in new cities — one focused on new moms in Flint, Michigan began enrolling participants on January 10. Chicago also announced in April that it will relaunch its basic income program.
Even so, program leaders in San Antonio said GBI cash payments are only a step toward combating poverty.
Basic income helped participants in Texas and other states to meet their basic needs, the UpTogether survey report said, but they often can't fix long-term financial challenges. For participants to thrive over time, people also need access to educational opportunities, stable employment, and healthcare.
And, as more cities experiment with GBI, Hashash said the programs provide insight into long-term policy. States like New Mexico and California are already expanding the scope of basic income to the state level. She said flexible funding programs like the American Rescue Plan Act have let states continue testing basic income, and the model has "spread like wildfire."
"It opened the door for states to be able to demonstrate guaranteed income's effectiveness, and for the federal government to take notice," Hashash said.
Have you benefited from a guaranteed basic-income program in San Antonio or elsewhere? Are you willing to share how you're spending your money? Reach out to these reporters at allisonkelly@insider.com and nsheidlower@insider.com.
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