Guaranteed Income Programs Show Positive Economic Impact

A coalition of 250 US lawmakers has released preliminary findings regarding guaranteed income pilot programs. These programs have distributed over $335 million in economic relief to approximately 30,000 Americans. The data indicates that these cash payments did not discourage work; in fact, recipients were more likely to find long-term employment.

Key findings from the reports include:

• Recipients reported less stress and anxiety
• Participants demonstrated increased financial resilience
• No pilot programs resulted in reduced work
• Programs are expanding in cities like Cook County, Illinois

Despite positive outcomes, some reports noted limitations regarding debt reduction and healthcare access.

A coalition of mayors, county officials, and state legislators has gathered preliminary reports from 27 guaranteed income pilot programs. According to the coalition's 2025 End of Year report, these programs have provided over $335 million in economic relief to about 30,000 Americans. The group noted that "at a time when key federal aid programs are being dismantled, state leaders are picking up the slack and bolstering economic stability for residents."

Since 2020, lawmakers have implemented at least 72 pilots in 26 states. A guaranteed basic income is defined as a government providing certain residents with no-strings-attached, recurring cash payments for a specified period. Eligible residents typically fit specific criteria, such as having a household income near the poverty line.

These programs differ from a universal basic income, which provides payments to all residents regardless of socioeconomic status. The idea of universal basic income gained renewed momentum when Andrew Yang ran for president in 2020, proposing monthly checks of $1,000. Additionally, many AI leaders support basic income to mitigate potential job losses as technology advances.

Opponents of guaranteed income programs often worry that cash payments could discourage recipients from working. However, the coalition's end-of-year report showed the opposite. The report stated, "Guaranteed income recipients are more likely to find long-term employment." It further emphasized that "Not a single pilot has resulted in reduced work."

Specific pilot programs demonstrated positive employment trends:

• Stockton, California: Participants receiving $500 a week saw full-time employment rise from just over 25% in February 2019 to 40% one year later.
• Rochester, New York: Residents receiving $500 a month were 26% more likely to be employed, driven by an increase in part-time work.

A separate study supported by OpenAI CEO Sam Altman also found that monthly payments of $1,000 did not discourage work. While this study was not included in the coalition's report, it is one of the largest conducted in the United States. Altman's study also noted that participants reported significant reductions in stress and food insecurity during the first year, though these effects faded in subsequent years.

Based on data from 27 preliminary reports, recipients experienced significant improvements in mental health and financial stability. The coalition reported that "Recipients have reported less stress and anxiety, reduced household chaos, and more hopefulness for the future."

Financial resilience emerged as a major theme. The report noted that "Guaranteed income recipients are more likely to demonstrate financial resilience by paying off debt, saving for emergencies, and investing in their future."

Specific examples from various cities support these findings:

• Durham, North Carolina: A program for formerly incarcerated individuals showed lower levels of stress and anxiety, along with increased household organization.
• Tacoma, Washington: Vulnerable families receiving $500 a month showed enhanced financial health and a greater ability to manage a $400 emergency expense.
• Gainesville, Florida: Participants were more likely to afford a $400 emergency expense, a trend that continued even after the pilot ended.

While some lawmakers are considering guaranteed income programs for the first time, others are building on existing pilots. Cook County, which includes Chicago, has made its basic income pilot permanent after the Board of Commissioners unanimously approved the program in the 2026 budget proposal. The program paid $500 a month to 3,200 households. At the federal level, New Jersey Rep. Bonnie Watson Coleman reintroduced a bill to establish a nationwide guaranteed basic income pilot.

However, the reports also highlight limitations. The preliminary report from Rochester found that recipients were "no more likely to pay off past-due debts." The average balance in derogatory accounts did not significantly differ between recipients and the control group. Results from a pilot in Boulder, Colorado, showed that while payments improved basic needs, other issues like childcare affordability and health insurance coverage did not change. Similarly, Altman's study found no direct evidence of improved access to healthcare or physical health improvements.