Guaranteed Income Works: Data from Madison, WI
The Madison Forward Fund (MFF)
The Madison Forward Fund (MFF) provided a monthly cash payment of $500 for one year, to 155 households in Madison, WI. Funded entirely by private donors and philanthropic organizations, the program was founded upon the beliefs that people experiencing poverty know best what their immediate needs are, and the autonomy and flexibility of unrestricted financial support gives them the best chance to thrive.
MFF was a partnership of the City of Madison, Mayors for a Guaranteed Income, TASC, Give Back Foundation, the Institute for Research on Poverty at University of Wisconsin–Madison, and the Center for Guaranteed Income Research at the University of Pennsylvania. Recipients, as well as a control group of 200 people, were randomly selected from a pool of qualified applicants who were Madison residents, 18 and older, with a household income less than 200% of the Federal Poverty Line, and with a child under 18 years old living at home. Researchers evaluated the impact of the unconditional cash on participants’ financial resilience, health and wellbeing, and workforce participation, along with other quality of life indicators.
Key Takeaways
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Recipients’ ability to handle a $400 emergency expense increased over time, and was sustained after the program ended. Prior to receiving payments, only 7% of the recipient group could handle such a financial shock compared to 17% of the control group. By six months, the percentage of recipients who could handle a $400 emergency expense increased to 16%, and held steady at 18% at 12 and 18 months.
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Recipients demonstrated higher full-time employment rates than people in the control group, with a steady increase in full-time employment rates over time (29% at baseline; 40% at 18 months).
After 12 months of guaranteed income, recipients were more likely than the control group to be actively looking for work if unemployed. Interview data indicates that many recipients were seeking to better balance employment and parental responsibilities.
Among those unemployed, the most frequently cited reasons for not working included caregiving commitments and unaffordable or unreliable childcare
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Interview data shows that recipients felt a greater ability to engage in health-promoting behaviors, like choosing healthy food, seeing the doctor, going to therapy, and declining jobs that they felt risked their health.
MFF shows that a relatively modest amount of cash makes a tangible difference for Madison families who are working hard to help their children thrive. This study offers a snapshot into the financial reality of families experiencing economic precarity in the context of rising inflation, low wages, and increasing cost of living.
The data and stories from MFF document the undervalued and overlooked labor that contributes to the Madison community, and how guaranteed income can help families truly thrive. With 18% of Madison residents–almost one in five people–living in poverty, guaranteed income programs hold promise to supplement the community’s existing supports by improving the financial security of Madison’s families and supporting an economy that works for everyone.