Guaranteed income program in Cambridge boosted employment and financial health, report finds
CAMBRIDGE - Giving money directly to low-income families in Cambridge paid off in more ways than one, researchers say.
Results of the Cambridge RISE pilot program, a guaranteed income initiative which gave 130 families in the city $500 a month for 18 months, were released on Wednesday. They show "significant improvements in financial health, higher rates of employment, increased time and space for parenting, and improved educational outcomes for children," according to the Cambridge Community Foundation.
Findings from Cambridge guaranteed income pilot
Those receiving payments increased their employment rate from 36% to 40% after a year, the researchers said. A control group that did not receive money saw their employment level fall from 30% to 28%.
"Recipients also had higher rates of part-time and seasonal employment," the report said.
The average recipient also said their income went up, and they were better able to cover a potential $400 emergency expense.
Additionally, those in the program reported that they had an easier time affording housing and food, and parents said the guaranteed income allowed for more time spent with children.
"By providing direct cash, we've not only strengthened financial health but also empowered families to thrive," said former Cambridge Mayor Sumbul Siddiqui, who started the program.
What's next for guaranteed income
The money for the pilot program came from philanthropists. The city's new cash assistance program, Rise Up Cambridge, is giving $500 a month to roughly 2,000 families living at or below 250% of the federal poverty level using American Rescue Plan Act funds.
In Boston, the city council held a hearing last fall to consider a guaranteed basic income program for its poorest residents.