Guaranteed Income Works: Data from Mount Vernon, NY
The Level-Up guaranteed income project
The Level-Up guaranteed income project provided 200 eligible Mount Vernon residents with $500 per month for one year, beginning in April 2023 and ending in March 2024. Initiated by Mayor Shawyn Patterson-Howard, the goal of Level Up was to add to the growing body of evidence that guaranteed income increases the economic stability of participants and their overall health and well-being. To qualify, applicants had to be a resident of Mount Vernon, at least 18 years of age, with a minimum income of $15,000 and no more than 80% of the Community Development Block Grant (CDBG) Program annual income limit. Participants were randomly selected by researchers, along with 227 applicants who made up the control group members.
Key Takeaways
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Level-Up participants demonstrated improved financial security, with 52 percent reporting they were “managing” after the pilot ended, compared to 38 percent of people in the control group. Post pilot, at 26%, participants in the treatment group were less likely to express they were going into debt compared to 37% with the control group.
An improved ability to pay bills can lead to more mental bandwidth to handle financial setbacks and to plan ahead; about half of participants reported that the guaranteed income payments allowed them to intentionally plan for the future.
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In interviews, participants reported moving into better jobs and full-time employment. Many reported using guaranteed income to overcome barriers, such as childcare and transportation, in order to secure employment that better fit their lives.
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Adults aged 50 and older were more likely to go to the doctor throughout the pilot, and six months after the pilot ended, they saw the doctor three times more than people in the control group. Participants used guaranteed income to cover co-pays as well as supplement lost income during medical treatment and recovery.
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Level-Up appears to have temporarily increased food security, with 44 percent of participants reporting having enough to eat at six months into the pilot, compared to 31 percent of the control group.
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Qualitative data shows that guaranteed income allowed parents to spend more quality time with their children, and afford enriching activities like field trips and extracurricular programs. About half of participant parents reported using guaranteed income to make birthdays and holidays special for their children.
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Level-Up participants reported that the increased ability to cover the basic necessities improved their sense of agency and their ability to set and meet goals. About half of participants reported that the cash enabled them to contribute to their family and community, particularly when it came to aging family members.
Level-Up was designed to contribute to our understanding of the impact of guaranteed income programs, and the results show that the flexibility of unconditional cash helps adults in different stages of life meet different needs. Younger working age adults with children tended to improve their employment arrangements, while adults over 50 visited the doctor at a higher rate and addressed health concerns. Improved financial security, as well as better housing and food security, was a common finding for all participants. Data from the Level-Up study will be used by local leaders to advocate for policies that fight poverty and improve financial security in Mount Vernon and across New York.