By Tacoma Weekly
Mayors for Guaranteed Income, Mayor Victoria Woodards, and the United Way of Pierce County welcomed the release of independent data on the Growing Resilience In Tacoma (GRIT) guaranteed income pilot, showcasing significant improvements in financial stability, a reduction in income volatility, an increase in stable, full-time employment, and less food insecurity than a control group of similar Tacoma residents.
The GRIT pilot focused on families that are considered “asset-limited, income-constrained and employed” (ALICE). From December 2021 to December 2022, GRIT gifted $500 a month to 110 ALICE families in Tacoma. These dollars were unconditional and had no strings attached. Results of the GRIT pilot demonstrate that a modest, unrestricted cash investment can improve families’ financial stability, food security, well-being, and reduce poverty in our community.
Key findings include the following.
Improved financial health: Recipients of guaranteed income increased their incomes above the control group by a statistically significant margin, which was sustained six months after payments stopped. They exhibited significant improvements in financial resilience, particularly in their ability to manage a $400 emergency expense. The percentage of the control group who had more than $500 in savings declined throughout the study, while the percent increased among guaranteed income recipients.
Employment: Recipients of guaranteed income were significantly more likely to be employed across every time point evaluated. Additionally, data demonstrated stability of full-time employment among recipients (63%) over time relative to the control group (52%). The proportion of participants who identified as stay-at-home parents or caregivers remained almost 10 percent points higher in the control cohort relative to guaranteed income recipients across all time periods.
Food security: This study period occurred during a period of historically high inflation and rising food costs. Although both groups experienced food insecurity, the control group consistently reported higher levels of food insecurity across various measures. The percentage of control group participants expressing concerns about sufficient food availability rose from 45% at the study’s onset to 68% by its conclusion. In contrast, the concerns of recipients grew less substantially, from 42% to 53% during the same timeframe.
Housing affordability and quality: Recipients consistently displayed a reduced cost burden compared to those in the control group throughout the duration of the study, and a greater proportion of recipients reported transitioning into higher-quality homes and more desirable neighborhoods compared to the control group.
Woodards, who championed the pilot program, said “I’m very proud to see these results, which confirm that our initial investment had a meaningful impact on the lives of the people who received the guaranteed income. As we continue to distribute recurring cash support with GRIT 2.0, I hope that Tacoma can serve as an example that informs state and federal policy efforts to address poverty.”
One participant in the GRIT pilot explained the benefit, stating, “I feel like people view [people receiving benefits] as being lazy or just taking advantage of the system, and I’m like, well, that’s not necessarily the case for everybody. A lot of them have disabilities or things like that that prevent them from being able to make a reliable or stable income. And I’m in the position where I could probably benefit from assistance, I have a degree and everything, and I’m still kind of struggling to not be homeless on the street in this market.”
Following the successful conclusion of its pilot, the City of Tacoma and the United Way of Pierce County expanded the initiative. GRIT 2.0 is a partnership with the Washington State Economic Services Administration, the City of Tacoma, Pierce County Government, and United Way of Pierce County designed to boost the financial security of low-income, single heads of households with children.
“So many people are working very hard but don’t make enough to be able to get ahead,” said Michael D. Tubbs, founder of Mayors for a Guaranteed Income. “The GRIT program targeted families who are largely excluded from our social safety net, because they earn just a little too much to qualify for federal benefits, but still don’t receive a living wage. Giving these families a hand up is common sense, and data shows it’s good policy for the city, too.”
Tacoma’s pilot is affiliated with Mayors for a Guaranteed Income, a coalition of over 150 mayors and growing. The research findings from Tacoma build upon similar results from the mayor-led guaranteed income programs in Stockton, CA; Saint Paul, MN; Cambridge, MA; Paterson, NJ; Richmond VA; Baltimore, MD; Los Angeles, CA; and Birmingham, AL where researchers found increased employment, greater financial stability, more parent-child time, and a better level of overall well-being.
“The GRIT pilot has proven what we’ve long believed: a modest, unconditional cash investment can transform lives. From improving financial stability and employment opportunities to reducing food insecurity, these results show the profound impact of investing directly in ALICE families working hard but remaining vulnerable,” said Dona Ponepinto, president and CEO of United Way of Pierce County. “This is a step forward in addressing poverty and creating pathways to a stronger, more resilient community.”
Read the full report at uwpc.org.
