Two cities, Gainesville in Florida and Durham in North Carolina, recently implemented guaranteed basic income (GBI) programs aimed at supporting formerly incarcerated individuals. These initiatives sought to address the financial instability faced by this vulnerable group, offering cash assistance without strings attached. Participants experienced improved food security but encountered significant challenges in affording housing after the program concluded. The study's findings highlight both the benefits and limitations of GBI as a tool for poverty reduction.

Empowering Formerly Incarcerated Individuals with Cash Assistance

The pilot programs in Gainesville and Durham provided crucial financial support to help participants meet essential needs. In Gainesville, 115 participants received an initial payment of $1,000 followed by monthly installments of $600 for 11 months. Meanwhile, Durham distributed $600 per month to 109 participants over one year. This assistance allowed many recipients to secure stable housing, cover unexpected expenses, and even find steady employment. The results showed that while financial resilience improved during the program, long-term stability remained a challenge once payments ceased.

Formerly incarcerated individuals often face higher rates of unemployment and financial insecurity compared to the general population. The Bureau of Justice Statistics reports that about a third of these individuals remain unemployed four years after release. Many states also impose restrictions on accessing social safety nets, exacerbating their economic struggles. For example, Florida prohibits those convicted of drug trafficking from receiving SNAP or TANF benefits. The GBI programs aimed to bridge this gap, providing much-needed funds to cover rent, groceries, and household bills. Participants in both cities reported using the money to afford essentials and build savings, which alleviated stress and improved mental health. In Gainesville, the percentage of participants worried about having enough food decreased from 59% at the start to 49% six months post-program. Similarly, Durham saw a drop from 59% to 44% in food insecurity concerns.

Housing Challenges Persist Post-Program

Despite the positive impact on food security and financial resilience, many participants struggled with housing costs after the GBI programs ended. Six months into the Gainesville pilot, only 3% of participants reported homelessness, but this figure rose to 12% six months after payments stopped. In Durham, 29% of participants were severely burdened by housing costs midway through the program, increasing to 41% six months after it concluded. These statistics underscore the need for more comprehensive support beyond temporary cash assistance.

Sukhi Samra, executive director of Mayors for a Guaranteed Income, emphasized that GBI is not a panacea for poverty. While the programs provided a vital lifeline, they highlighted the ongoing financial challenges faced by formerly incarcerated individuals. Samra noted that financial support can prevent re-entry into the prison system by giving people the means to adhere to probation requirements and avoid harmful activities driven by economic desperation. The study’s findings suggest that while GBI can offer short-term relief, sustained support is necessary to achieve lasting financial stability. Participants in both cities expressed hope that the program would be extended or complemented by other forms of assistance to address persistent housing issues and ensure a smoother transition back into society.