In a groundbreaking move nearly three years ago, some of Los Angeles’ most underprivileged families were given a monthly cash boost of $1,000 with no strings attached. The initiative set out to empower these individuals in making positive changes in their lives. Now, a recent study reveals the overwhelming success of this city-funded program, shedding light on the profound impact it has had on the participants.
Here are some key takeaways from the study conducted by researchers at the University of Pennsylvania and UCLA:
- Participants in the program saw a variety of financial benefits, enhancing their overall financial stability.
- The initiative provided individuals with the time and opportunity to make lasting improvements in their lives, such as securing better job opportunities, escaping dangerous living situations, and breaking free from abusive relationships.
Dr. Amy Castro, co-founder of the University of Pennsylvania’s Center for Guaranteed Income Research, highlighted the importance of breaking free from the cycle of financial scarcity, which often leads to time constraints that prevent personal growth and meaningful relationships.
The Basic Income Guaranteed: Los Angeles Economic Assistance Pilot, also known as BIG:LEAP, distributed $38.4 million to 3,200 residents who met specific criteria and experienced hardship due to COVID-19. This program, a first of its kind in the country, aimed to provide direct assistance to those in need and create a foundation for long-term success.
The study found that participants reported significant increases in savings and were better equipped to handle emergency expenses. Additionally, recipients were more likely to secure employment or actively seek work, indicating a positive shift towards long-term financial security.
In a city with soaring housing costs, the guaranteed income acted as a safety net, preventing homelessness and enabling individuals to cover rental expenses. It also played a crucial role in mitigating intimate partner violence, providing victims with the means to seek safer living arrangements.
Moreover, the guaranteed income impacted the health and wellbeing of participants, allowing them to prioritize self-care, maintain healthier habits, and seek mental health support for themselves and their children. The program created opportunities for families to engage in recreational activities and educational programs, fostering a sense of stability and normalcy.
Overall, the success of BIG:LEAP has sparked conversations about the future of similar programs in Los Angeles and beyond. While some concerns have been raised by taxpayer groups, advocates like Councilmember Curren Price are championing the continuation of the initiative to support individuals in abusive relationships and young adults in need of mental health services.
As the city grapples with funding challenges, there is hope that the program’s positive outcomes will pave the way for continued support from the community and local leaders. The impact of BIG:LEAP serves as a testament to the transformative power of guaranteed-income programs and their ability to uplift vulnerable populations towards a brighter future.
