Guaranteed Basic Income (GBI) Pilot Programs

A Guaranteed Basic Income (GBI) offers system-impacted individuals the opportunity to break the cycle of poverty by providing unconditional cash payments to support the recipient’s basic needs. Research findings from the First Cohort suggest that providing a basic income creates a normalcy which improves the individual's income stability, housing stability, employment stability, educational attainment, self-sufficiency, and overall wellbeing.

The County of Santa Clara (County) is piloting guaranteed basic income pilot programs as an approach to help individuals achieve stability in their finances, daily life, and long-term well-being through monthly unconditional cash payments of $1,200 for two years. The County’s Guaranteed Basic Income (GBI) pilot programs will distribute over $12 million in direct cash payment to approximately 350 individuals from four target populations, including former foster youth, unhoused high school students, justice-involved clients, and young moms.

The County is supporting GBI efforts throughout Santa Clara County to test the efficacy of GBI as an intervention strategy to increase self-sufficiency. Below are targeted outcomes for the County’s pilots.

1. Former Foster Youth targeted outcomes to measure impact on wellbeing.
2. Unhoused High School Students targeted outcomes to measure impact on education/employment.
3. Justice-involved Clients targeted outcomes to measure impact on recidivism (new convictions).
4. Young Moms targeted outcomes to measure impact on childcare, generational success, and mother’s wellbeing.

Additionally, focus groups from the first cohort of former foster youth (First Cohort) surfaced the importance and impact of adult and peer role models. Some of the participants spoke of the connection developed and maintained with their social worker. Other participants appreciated the volunteer mentors from Excite Credit Union who gave their time and financial expertise to increase credit scores, develop long-term financial plans, and served as sounding boards for important life decisions. Some participants became a community of support for each other and want to provide similar support for the next cohort.

Below are highlights of positive, measurable impacts the GBI had on the First Cohort participants from the initial baseline survey in August 2020 to the first post-pilot survey in September 2022.

• Literal homelessness decreased from 11% to 5%
• Home ownership increased from 0% to 3%
• Renting increased in the following living arrangements:
  • Place alone: from 19% to 23%
  • Place with family: from 19% to 20%
  • Place with friends: from 6% to 8%
  • Place with others: from 14% to 23%
• Majority use of funds remained rent, but decreased from 76% of funds to 52%
• Enrollment in school full-time increased from 13% to 33%
• Enrollment in school part-time decreased from 88% to 67%
• Full-time employment increased 44% to 58%
• Individuals in a meaningful career increased from 56% to 60%
• Individuals whose work contributes to personal growth increased from 72% to 80%
• Individuals with a checking account increased from 72% to 88%

The second GBI cohort for former foster youth began monthly payments starting in August 2023. The County’s goal is to launch the remaining three pilots targeting unhoused high school students, justice-involved clients, and young moms throughout 2024. Co-design for each phase will happen with the assistance of stakeholders, community-based organizations, and lived-experience individuals. To learn more or get involved in GBI, please email [email protected].