Guaranteed Income Works: Data from ROCHESTER, NY
Rochester’s Guaranteed Basic Income (GBI)
Rochester’s Guaranteed Basic Income (GBI) pilot gave $500 per month for 12 months to 351 local residents whose income was at or below 185 percent of the federal poverty level ($26,973 per year). Launched in June 2023, the GBI pilot was initiated by the City of Rochester and administered by the Black Community Focus Fund (BCFF). Researchers from the University of Notre Dame’s Wilson Sheehan Lab for Economic Opportunities (LEO) randomly selected recipients from the more than 11,698 eligible Rochester residents who applied, and implemented a randomized controlled trial (RCT) evaluation to study the impact of GBI. Results include lower levels of stress, increased financial stability, better housing security and increased employment.
Key Takeaways
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GBI recipients were 183 percent more likely to have more money saved than they had the previous year, and at the end of the program, they had an average of $250 more saved than the control group.
GBI recipients were twice as likely to have reported making progress towards goals they set during the initial application, and 51 percent less likely than the control group to anticipate experiencing any kind of material hardship in the future.
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GBI recipients were 26 percent more likely to be employed and there was an increase in the likelihood of part-time work. Faster and more reliable transportation could have been a factor; recipients were 25 percent more likely than the control group to report driving as their primary mode of transportation.
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GBI recipients were 22 percent less likely to worry about eviction or foreclosure than the control group, and 13 percent less likely to worry about having utilities disconnected.
GBI recipients were 9.5 percentage points less likely than the control group to report that they were sometimes or often unable to afford enough food.
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GBI recipients had lower perceived stress and higher overall life satisfaction. There was a 15 percent reduction in recipients’ perceived stress scale relative to the control group, as well as a 13 percent higher life satisfaction during the GBI pilot.
At the end of the pilot, recipients were less likely to report feeling anxious about their finances than non-recipients.
Results of Rochester’s GBI pilot demonstrate that a modest amount of cash, $500 per month, can be a hand up for people who are struggling. The recurring cash had a positive impact on several socioeconomic dimensions that are important for well-being, and contrary to popular belief, recipients were more likely to be employed. With around one-third of city residents living in poverty, greater investment from the state in programs like GBI could have a significant impact on the quality of life and economic wellbeing of Rochester and surrounding communities.