A pioneering basic income pilot program in Seattle has yielded remarkable results, with low-income residents receiving $500 a month and experiencing a significant boost in employment rates. The program, aimed at reducing poverty, has not only doubled employment rates but also helped participants secure housing and improve their financial stability.
The Workforce Development Council of Seattle-King County launched the 10-month guaranteed basic income pilot program in the fall of 2022, enlisting 102 participants. The program, supported by public and private partners such as King County, the Employment Security Department, and Chase Bank, provided direct cash payments to selected participants, with no requirements to report how the funds were used. An impressive 88% of the participants were people of color, reflecting the program’s commitment to addressing racial and economic disparities.
Findings from research firm Applied Inference reveal the positive impact of the program on participants’ lives. Employment rates among the participants nearly doubled, increasing from 37% before the program to 66% after its completion. Furthermore, participants reported securing higher-paying jobs with additional benefits, resulting in an average income increase from $2,995 to $3,405 per month.
One of the notable outcomes of the program was the improved financial stability of the participants. They were better able to pay off bills and debts, while also building up savings for the future. The percentage of participants with savings increased from 24% to 35%, and for families with children, this figure rose from 0% to an impressive 42%. Additionally, the percentage of participants consistently paying their bills doubled from 19% to 38%.
The program also had a positive impact on participants’ overall well-being. Many reported experiencing reduced anxiety and fatigue, as well as a newfound sense of freedom to travel and spend on non-essentials. Some participants even reported reduced physical pain, enabling them to pursue educational or professional goals more effectively.
Parents in the program primarily used the monthly payments for their children’s needs, although they expressed limited improvement in their own financial positions. Compared to non-parents, parents were less likely to have engaged in short-term professional training.
The success of the Seattle basic income pilot aligns with similar programs implemented nationwide, which have consistently demonstrated positive outcomes. Participants in universal and guaranteed basic income programs have reported using the funds to pay off debts, afford essential expenses such as groceries and childcare, and secure stable housing. Despite the evident benefits, conservative lawmakers across the country have voiced opposition to these programs, arguing that they discourage work and burden taxpayers. However, many of the pilot programs are independently funded through philanthropy or federal relief funds.
