As Americans have faced years of economic strain marked by inflation and rising consumer costs, a growing number of lawmakers have rallied behind guaranteed income programs as a potential stabilizing force.
More than 250 lawmakers have joined a coalition of mayors, county officials, and state legislators advocating for pilot programs that, by their count, have delivered over $335 million in direct financial support to roughly 30,000 people nationwide.
“At a time when key federal aid programs are being dismantled, state leaders are picking up the slack and bolstering economic stability for residents,” the coalition wrote in its 2025 end-of-year report.
A guaranteed basic income (GBI) provides eligible residents with recurring, no-strings-attached cash payments for a fixed period. Eligibility is typically limited to people who meet specific criteria, such as having a household income near the poverty line. These programs differ from a universal basic income, which would provide payments to all residents regardless of income or need.
The concept of universal basic income has existed for centuries but gained renewed attention during Andrew Yang’s 2020 presidential campaign, which proposed $1,000 monthly payments to Americans. In recent years, some leaders in the artificial intelligence industry have also backed basic income proposals as a way to offset potential job losses tied to technological change.
Despite experiments at the city and state level, basic income remains politically divisive, particularly in conservative districts. While some lawmakers have floated the idea of a nationwide program, no such proposal has reached a vote, with critics citing cost concerns and fears that cash payments could reduce incentives to work.
Since 2020, lawmakers have launched at least 72 pilot programs across 26 states, according to the coalition. Preliminary data from 27 of those pilots informed the group’s latest report, offering insights into how guaranteed income affects work, health, and financial stability.
Employment Did Not Decline
One of the most persistent critiques of guaranteed income is the concern that recipients will work less. The coalition’s findings challenge that assumption.
“Guaranteed income recipients are more likely to find long-term employment,” the report stated. “Not a single pilot has resulted in reduced work.”
In Stockton, California, a program that provided $500 per month to 125 residents between 2019 and 2021 saw full-time employment among participants rise from just over 25% to 40% within a year.
A more recent pilot in Rochester, New York, which gave 351 residents $500 per month for a year, produced similar results. According to the program’s report, recipients were 26% more likely to be employed at the time of the survey, driven largely by an increase in part-time work.
Separate research supported by OpenAI CEO Sam Altman—one of the largest basic income studies conducted in the U.S.—also found no evidence that monthly payments discouraged work. Participants in that study reported reduced stress and food insecurity in the first year, though some of those benefits diminished over time.
Reduced Stress and Improved Well-Being
Across the 27 pilots reviewed, recipients consistently reported lower stress levels.
“Recipients have reported less stress and anxiety, reduced household chaos, and more hopefulness for the future,” the coalition noted.
In Durham, North Carolina, a program that provided $600 per month to 109 formerly incarcerated individuals beginning in 2022 showed encouraging results. Compared with a control group, participants experienced lower levels of stress, anxiety, and depression, along with improved household organization and a stronger sense of overall health.
Greater Financial Resilience
Improved financial resilience emerged as another recurring theme.
“Guaranteed income recipients are more likely to demonstrate financial resilience by paying off debt, saving for emergencies, and investing in their future,” the report said.
In Tacoma, Washington, a 13-month pilot that paid $500 per month to 110 vulnerable families led to better financial well-being, increased savings, and a greater ability to handle a $400 emergency expense.
A similar trend appeared in Gainesville, Florida, where residents received $1,000 in the first month followed by $600 for the next 11 months. Participants were more likely to afford an unexpected $400 expense, and that benefit persisted even after payments ended.
Programs Continue to Expand
While some jurisdictions are experimenting with guaranteed income for the first time, others are moving to make successful pilots permanent.
Cook County, Illinois, which includes Chicago, approved its basic income program as a permanent feature of its 2026 budget. The original two-year initiative, launched in 2022, provided $500 per month to 3,200 households.
At the federal level, New Jersey Rep. Bonnie Watson Coleman has reintroduced legislation proposing a three-year nationwide guaranteed income pilot, with payments designed to cover the cost of rent for a two-bedroom home.
Promising Results, but Clear Limits
Despite positive outcomes, the data suggests guaranteed income is not a universal solution.
In Rochester, researchers found that recipients were no more likely, on average, to pay down past-due debts. Balances in derogatory or collections accounts did not significantly differ between recipients and non-recipients.
A pilot in Boulder, Colorado, showed that while participants were better able to meet basic needs, other challenges persisted. Childcare affordability, health insurance coverage, and delays in seeking medical care showed little to no improvement during the payment period.
Even in Altman’s large-scale study, researchers found no direct evidence that monthly payments led to improved access to healthcare or lasting gains in physical or mental health.
Together, the findings suggest that guaranteed income programs can provide meaningful relief and stability—but may need to be paired with broader policy solutions to address deeper structural issues.
