Guaranteed Income Works: Data from ST. LOUIS, MO
St. Louis Guaranteed Basic Income (GBI)
The St. Louis Guaranteed Basic Income (GBI) Program provided $500 per month for 18 months to 540 households with school-aged children. To qualify, applicants had to live in St. Louis, with a minor child or dependent enrolled in one of the city’s public schools, have an annual income below 170% of the federal poverty level, and have experienced a negative financial impact due to the COVID-19 pandemic.
The City of St. Louis partnered with the Center for Social Development, the Brown School Evaluation Center, and Appalachian State University to conduct a mixed-methods evaluation of the GBI program. Researchers found increased financial stability, improved food security, reduced barriers to employment, increased enrichment for children, and positive health behaviors.
Key Takeaways
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The number of participants who reported missing their housing or utility payments within the past year declined significantly from baseline to the end of the program. Nearly all of the participants, 95%, agreed that the cash made it easier to manage inflation costs.
The number of participants who had savings set aside grew from 27% at baseline to 46% by the end of the program.
Participants improved their credit scores by an average of 12 points over the course of the program, and there was a significant drop in missed payments.
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The number of participants who reported going hungry or reducing food intake due to lack of money dropped significantly during the program. Several participants were able to select healthier and better quality food to feed their families.
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The vast majority of participants, 86%, agreed that the program made it possible for them to afford better activities for their children, including extracurricular programs, enrichment opportunities, tutoring and essential support services. Seventy percent (70%) of participants reported improvements in their child’s school performance as a result.
Virtually all participants (99%) agreed that they felt more confident in meeting the needs of their children during the program. Reduced financial stress helped parents feel more relaxed and emotionally available for their families.
The number of participants who were able to save for their children’s future education increased, as did the average amount saved. often unable to afford enough food.
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Higher education, training, or career development was a widespread goal, with the majority participants enrolled or planning to enroll by the end of the program.
Eighty-four percent (84%) were able to afford more or better childcare to support their families.
By the end of the program, participants had significantly improved their access to reliable transportation, which is vital to accessing employment, education, healthcare and basic necessities.
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Participants reported being able to prioritize their health and their children’s health. Payments helped cover doctor co-pays and prescription medication costs, and for many the reduction in financial stress made it easier to become more physically active, for themselves and together as families.
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Reduced stress and increased stability helped participants feel more empowered to offer support to others and deepen relationships with loved ones, bringing a renewed sense of connection.
For many low-income families, living on an extremely tight budget creates stress and strain about how to make ends meet. Facing rising costs of living and community-wide economic disruptions, the ability to build savings, pay down debts, or make progress on their long-term financial goals may seem out of reach. The St. Louis GBI program provided a reassuring stability that enabled participants to invest in themselves, their children, their family’s health and their community. It is a model for other cities and counties looking to boost the economic resilience of their residents and create resounding community benefits.