Report: Landmark guaranteed income program in City of Los Angeles produces “overwhelmingly positive” results

Groundbreaking study demonstrates impact of direct cash over a 12-month period, showing increased ability of recipients to exit intimate partner violence, decreased food insecurity, and improved quality of life across a number of additional domains.

City of Los Angeles residents who received $1000 monthly cash payments for a year as part of the Basic Income Guaranteed: Los Angeles Economic Assistance Pilot (BIG:LEAP) program reported positive trends in financial well-being, food security, intimate partner violence, parenting, sense of community, and reduced fear of community violence.

“BIG:LEAP participants experienced overwhelmingly positive outcomes with the infusion of unconditional cash,” write the authors of a new report produced by the Center for Guaranteed Income Research (CGIR) at Penn's School of Social Policy & Practice (SP2), in partnership with the UCLA Fielding School of Public Health.

The program provided a guaranteed income (GI) to 3,200 households living in deep poverty within Los Angeles, California, the second largest and most unaffordable city in the country. Implemented by the city’s Community Investment for Families Department (CIFD) and supported by the city’s general fund with investments from local council district leaders, BIG:LEAP serves as an example of a government-led direct cash program executed at a large scale with public resources and infrastructure.

According to the report’s authors, BIG:LEAP marks a number of milestones — the first large-scale randomized controlled trial of unconditional cash positioned to determine how much change can occur in recipients’ lives within a 12-month period, the largest GI study that has concluded since the U.S. government’s experiments with income tax in the 1960s and 1970s, and the first GI study since the 1970s to consider intimate partner violence and community violence.

“The City of Los Angeles is working urgently to provide Angelenos with economic opportunities and resources in our efforts to alleviate poverty throughout L.A. These are encouraging results and I'm looking forward to expanding this program in more stable economic times. We must continue to implement creative solutions to the challenges we face and I look forward to continuing that work with locked arms,” says City of Los Angeles Mayor Karen Bass.

Michael D. Tubbs, founder of Mayors for a Guaranteed Income (MGI), says, “Every day, folks are working hard and doing their part, yet still falling short. Guaranteed income gives them the flexibility to meet their families’ needs and the stability to reach for a better future.” MGI is a coalition of over 125 mayors committed to advancing a federal guaranteed income.

Part of a series of CGIR publications collectively named The American Guaranteed Income Studies, the report found that despite extreme financial pressures and profound effects of the COVID-19 pandemic, recipients benefited from GI in several ways over the duration of the program:

• Improved safety and autonomy — GI recipients reported reduced severity and frequency of intimate partner violence (IPV), with recipients using GI to prevent and exit circumstances of IPV.
• Strengthened sense of community — GI recipients were considerably more likely to report reduced fear of neighborhood violence and increased positive interactions with neighbors.
• Improved financial well-being — GI recipients demonstrated a significantly increased ability to cover a $400 emergency compared to the control group.
• Enhanced food security — GI recipients showed a notable decrease in food insecurity and an increase in health-promoting behaviors.
• Increased enrichment for children — Compared to those in the control group, parents receiving GI were significantly more likely to maintain their children’s extracurricular activities and reported more time for parenting. 

“In Los Angeles, a city of extreme wealth and extreme poverty, the opportunities for upward economic mobility can seem out of reach,” write the researchers, Drs. Bo-Kyung Elizabeth Kim, Amy Castro, Stacia West, and colleagues. “BIG:LEAP, the largest GI program at its time of launch, represented a bold and significant investment to provide economic security and a solid foundation for mobility to a diverse group of caregivers with children.”

Los Angeles City Councilmember Curren Price proposed the pilot in 2021. “Through this program, we witnessed transformation beyond measure. BIG:LEAP didn't just help Angelenos address health issues, school expenses, childcare, or emergency needs; it empowered participants to start businesses, move into their own homes, and reclaim hope from despair,” says Price. “The undeniable impact of programs like BIG:LEAP speaks volumes—it has the power to rewrite destinies and is vital for a brighter future.”

Adds Council President Pro-tem Marqueece Harris-Dawson, “The BIG:LEAP program offers significant change for some and life-altering benefits for others. The data underscores its effectiveness and success in improving health and wellbeing, and stability for all who participated.”

To qualify, participants were required to be at least 18 years old, have at least one dependent within the household or be expecting a child, be financially or medically impacted by COVID-19, and fall below the federal poverty threshold. Researchers measured participant impact against a randomized control group of 4,992 other residents who did not receive payments, though both study groups were compensated for completing surveys and interviews. 

One participant commented, “[BIG:LEAP] saved my life really … I’d probably be living on the streets. I probably would have had my kids taken … it gave me a sense of security instead of always wondering if I’m gonna be able to get money for the next meal.” 

The researchers say the study’s “remarkable” results suggest GI programs could serve as critical and commonsense approaches to supporting families and communities. “As the country, led by individual municipalities and innovative … leaders, moves toward shoring up the porous social safety net, GI appears to be an effective strategy to promote overall health and well-being,” the authors write.
 

Media contact:
Carla Denly
Associate Dean for Marketing & Communications
cdenly@support.ucla.edu