Policy Areas: Guaranteed Income & Poverty

Briefing Summary

The D.C. Guaranteed Income Coalition is a network of D.C.-based organizations and individuals committed to achieving a permanent guaranteed income program that provides monthly cash payments to residents to ensure that all our District neighbors live above the poverty line and can afford basic necessities. According to the D.C. Fiscal Policy Institute, ¹ 13.5% of D.C. residents were living in poverty in 2019. More than 1 in 5 Black residents lived in poverty, compared to 9% of Latinos and 5% of non-Hispanic white residents. Guaranteed income programs have the proven ability to stabilize households in need, with recipients enabled to decide for themselves how best to serve their own needs. In D.C.’s THRIVE pilot program, participants spent assistance primarily on housing, food, or other needs such as transportation or debt reduction.² A study of a pilot program in Stockton, CA found that cash assistance increased full-time employment and improved health among recipients.

Pilot Programs

In addition to the pilot funded through the fiscal 2022 budget, there are several active or upcoming privately-funded pilot programs in D.C., each serving distinct target populations, including:

Let’s Go DMV: a 5-year program assisting hospitality workers impacted by COVID-19
CashRx: a direct cash assistance program targeting social determinants of health
Mother Up: a 3-year program to assist low-income mothers at risk of involvement with the child welfare system
My Sister’s Place: an emergency cash transfer program for survivors of domestic violence
Steve Thomas Guaranteed Income Program: a program that pairs cash assistance with housing for individuals experiencing homelessness

In a 2018 analysis, the D.C. Budget Office raised several questions for study regarding the structure of guaranteed income in the District, including who would receive the minimum income and how a guaranteed income program would interact with existing social safety net programs. The analysis also noted that at the time more data was needed to understand the economic impact of guaranteed income on family stability, child well-being, and labor supply. A diversity of pilot programs is crucial to answering these questions and providing direction to ensure a robust and effective guaranteed income program in the District going forward. As D.C.’s guaranteed income program expands and as additional pilots are added, the Coalition hopes the Council will ensure a transparent and inclusive process for the disbursement of funding, including selection criteria that are competitive and driven by community input.

Benefits Cliff

The benefits cliff refers to the potential for program recipients to lose access to other public benefits due to increased income from the cash assistance provided. The D.C. Guaranteed Income Coalition applauds the council’s recent legislation that allows for the exclusion of cash assistance payments from the calculation of income for certain public benefits. Following this important step, it is crucial that this benefits protection reaches all who are eligible. The Coalition hopes the Council will continue to be committed to the full implementation of the legislation, including: 1) ensuring that all staff at the relevant agencies are aware of and trained on these issues; and 2) extending the opportunity for benefits counseling to participants in all pilot programs.

Budget Request

Pilot program funding request: $13.5 million over 3 years

This would provide funding for 750 people to receive $500 per month for 3 years

In addition, the Coalition requests funding of approximately $6.75 million for a Hold Harmless Fund to support families whose safety net benefits may be reduced or lost because of extra income received.

Noth, Alyssa and Tazra Mitchell, “Before the Pandemic, DC’s Economy was Booming, but COVID-19 is Increasing Hardship,” September 17, 2020. https://www.dcfpi.org/all/before-the-pandemic-dcs-economy-was-booming-but-covid-19-is-increasing-hardship/
Urban Institute, “An Evaluation of THRIVE East of the River,” February 24, 2022. https://greaterdc.urban.org/publication/evaluation-thrive-east-river

Pilots in the DMV

There are currently 6 guaranteed income pilot programs distributing cash in Washington, DC, with 2 planning to launch payments in the near future. Keep reading to learn more about DC’s guaranteed income programs, past, present, and future.

PAST

THRIVE East of the River – Launched by four community-based organizations, THRIVE East of the River provided emergency cash relief of $5,500 to households in Wards 7 and 8 during the height of the COVID-19 pandemic. In total, THRIVE distributed $3.2 million to 605 households. According to an Urban Institute report published in February 2022, THRIVE participants reported substantially better mental health and lower rates of housing and food insecurity than other people with low incomes, both nationally and in DC, after receiving the cash payments.

More info: https://www.urban.org/research/publication/evaluation-thrive-east-river-findings-guaranteed-income-pilot-during-covid-19

PRESENT

ARISE | City of Alexandria – Through Alexandria’s Recurring Income for Success and Equity (ARISE) program, 170 City of Alexandria residents who are at or above the Area Median Income will receive $500 a month for two years. Applications closed November 11th, and payments will begin in January 2023.

More info: https://www.alexandriava.gov/ARISE | 703-746-6400 | guaranteedincome@alexandriava.gov

Arlington’s Guarantee | Arlington Community Foundation – Through Arlington’s Guarantee, 200 Arlington households with children under 30% AMI will receive $500 a month for 16 months, as well as optional one-on-one coaching. Most recipients are currently on local housing grants, 25 are returning from incarceration, and 25 are undocumented. Payments began in 2021 and will continue through November 2023.

More info: https://www.arlcf.org/arlingtons-guarantee/ | avorderbruegge@arlcf.org

Let’s GO DMV! – Let’s GO DMV! is currently providing $1,000 a month to 75 hospitality workers who became unemployed or underemployed due to COVID-19. Payments began in March of 2022 and will continue for five years.

More info: https://www.letsgodmv.org/ | (202) 939-3390

MoCo Boost | Montgomery County – MoCo Boost (Building Our Opportunities and Strength Today) is currently providing $800 a month to 300 Montgomery County households for two years. The program has already launched, and recipients include 100 households recently served by the Montgomery County Homeless Continuum of Care

More info: https://mocoboost.org/

Steve Thomas Guaranteed Income Project | National Coalition for the Homeless – The Steve Thomas Guaranteed Income Project provides $1,000 a month for twelve months to housing-insecure DC residents. The program will enroll up to 100 participants, with an end date of October 2023.

More info: https://nationalhomeless.org/steve-thomas-guaranteed-income/ | (202) 462-4822

Strong Families, Strong Futures | Martha’s Table – Strong Families, Strong Futures DC is currently providing cash to new and expecting mothers below 250% of the federal poverty level residing in DC Wards 5, 7 and 8. Mothers in the program could choose to receive either $900 for 12 years or $10,800 all at once, with most opting for the latter. The first payments were disbursed in May of 2022 and will continue through May of 2023. Funded with a grant from the Office of Deputy Mayor for Planning and Economic Development, this program marks DC’s first publicly funded cash transfer program. The application closed in March 2022, but Martha’s Table is currently fundraising for future cash transfer programs.

More info: https://marthastable.org/sfsf/ | sfsf@marthastable.org

My Sister’s Place Cash Transfer Program – Through their cash transfer program, My Sister’s Place plans to provide $500 a month for two years to 45 singles and families fleeing domestic violence. They are currently fundraising to increase their monthly payments to $1,000 a month and are planning to begin enrollment in early 2023. Read their press release here!

More info: https://www.mysistersplacedc.org/programs-and-services/ | (202) 540-1064

NEAR FUTURE

MotherUp | Mother’s Outreach Network – For Black mothers living in DC who are below a certain income threshold and have an open case with the DC Child and Family Services Agency, Mother’s Outreach Network is planning to disburse $500 a month for three years. Before launching their full three-year pilot, they will launch a 20-person “pre-pilot” in early 2023.

More info: https://mothersoutreachnetwork.org/mother-up-pilot/ | (202) 818-8649 | pilot@mothersoutreach.org

FAR FUTURE

CashRx | Bread for the City – Bread for the City is currently developing its CashRx direct cash assistance program. The program will focus on the social determinants of health to reach those most impacted by poverty.

More info: https://breadforthecity.org/

Fairfax County Guaranteed Income Pilot – Fairfax County recently allocated $1.5 million of its American Rescue Plan Act funding to developing a guaranteed income program for Fairfax County residents. The program is currently in development.

More info: https://www.ffxnow.com/2022/01/12/fairfax-county-seeks-to-break-cycle-of-poverty-with-basic-income-pilot/

The District Child Tax Credit Act And The Federal End Child Poverty Act

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