By Sarah Ravani
Oakland’s pilot guaranteed income program — one of the largest in the country — allowed participants to stay housed and get employment, according to a study of the initiative released Tuesday.
Employment rose from 15% to 26% for those participating in the 18-month, $6.7 million program, according to UpTogether, a social services organization that oversaw Oakland’s guaranteed income plan. The program’s analysis also showed that 44% of the participants were less likely to experience homelessness.
But the program’s organizers acknowledged that guaranteed income isn’t a solution to addressing systemic issues. Despite successes with pilot guaranteed income programs across the country, the initiatives have trouble scaling up since most rely on philanthropy, and whether they can affect peoples’ lives long-term remains unclear.
Oakland and other cities that are struggling to balance their budgets are an unlikely source of funding for such programs.
“Even though guaranteed income works, it can’t solve everything on its own,” said Jesús Gerena, the CEO of UpTogether. Gerena added that guaranteed income isn’t enough “to counter decades of disinvestment and the rising cost of living.”
Oakland’s program, which was launched under former Mayor Libby Schaaf, gave 600 residents $500-a-month cash payments with no strings attached for 18 months.
Participants had to be low-income with at least one child under 18 to be eligible for the program. It was open to anyone whose income qualified — a shift after the initial rollout spurred criticism that white residents wouldn’t be considered. For a family of three, annual income had to be below $61,650 and below $84,950 for a family of seven to qualify.
The study found that participants were more likely to save for the future, improve their health, support children in extracurricular activities and other benefits.
A similar study in Los Angeles, which paid 3,200 families $1,000 a month for a year, found that participants were more likely to secure full-time employment and find more stable housing.
Guaranteed income projects have taken off in the Bay Area and nationwide. Some, including the one in Oakland, have modeled their programs after one in Stockton, which has seen success. That program, which gave residents $500 a month, showed that when people received additional funds, it helped them gain employment, address mental health needs and take care of their families. There are at least 150 guaranteed income pilots happening across the country in at least 27 states, Schaaf said Tuesday in a webinar about the program.
But the long-term benefits of guaranteed income remain elusive. While participants in a program in Texas and Illinois gained flexibility to spend on basic needs, the cash didn’t change their net worth or mental or physical health, according to a 2024 study.
Schaaf applauded the Oakland program and said guaranteed income and other forms of unrestricted cash transfers allow people to tap into their potential. She balked at criticism that giving people free money will encourage them to stop working.
“It’s the exact opposite,” Schaaf said.
Schaaf said after the pandemic decimated the city’s economy — an issue that Oakland continues to grapple with — she was searching for an opportunity to help families rebuild. She got a phone call from Blue Meridian Partners, a philanthropic organization focused on poverty, asking for a proposal on how to help build an equitable recovery post-pandemic. As a member of Mayors for Guaranteed Income, a network of mayors advocating for the initiative, Schaaf said she felt like the invitation was her gateway to launching a guaranteed income program in Oakland. Blue Meridian Partners raised more than $6.7 million for the pilot program and about 80% of those funds went directly to residents.
Gerena said his organization is boosting philanthropic efforts to launch different guaranteed income programs nationwide.
Marrio Fitzgerald, an Oakland resident who participated in the program, said Tuesday that the initiative helped him pay for sports and other extracurricular activities for his children.
“When I got the income, it was a hard time in life for me,” Fitzgerald said. “I was under a lot of anxiety and stress, it comforted me to know that I would be able to make it to the next month.”
