A guaranteed income program launched in Austin, Texas helped reduce housing insecurity among residents in the city, according to a new report.
In May 2022, the city of Austin launched a taxpayer-funded guaranteed-income program named the Austin Guaranteed Income Pilot. The initiative provided 135 low-income families in the city with $1,000 monthly checks.
When the program ended in August, a report from the Urban Institute suggested that roughly 60% of the funds went toward covering housing costs, 20% went to basic needs, and 10% was used to pay the bills. Any remaining money was either invested or given to other people.
"It helped me get back on my feet. If I didn't have that, I wouldn't be able to pay my rent," a senior who is parenting her grandson told the Urban Institute.
In addition, funding from the initiative helped improve the participants' housing stability and mental health. Food insecurity also fell by 17% after the pilot program ended. Furthermore, at least 9% of participants also said they were able to reduce their working hours and use the time to "skill up" for future work or take on caretaking responsibilities.
Where Are Guaranteed Income Payment Programs Being Held?
City Council members in August approved a second round of guaranteed income payments of $1,000 a month for at least 85 families in Austin. It is unclear when the payments will be available and who will be eligible to receive the checks.
Apart from Austin, other cities in the country have also launched their own guaranteed income programs. This includes Cambridge, Massachusetts, and Ann Arbor, Michigan.
Houston has also become the next Texas city to implement some form of a guaranteed income program, sending low-income residents $500 in monthly checks for up to 18 months.
However, the program is facing a pushback. In a letter, State Sen. Paul Bettencourt asked Texas' attorney general to declare the new program in Houston as unconstitutional and argued that a section of the state's constitution says the legislature cannot give any county the power to grant public money for the aid of an individual.
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