US$750 Cash Boost Fails to End Homelessness

A randomized study in California examined the impact of providing US$750 monthly to 103 homeless individuals for a year. The research, conducted by the University of Southern California Homelessness Policy Research Institute in partnership with Miracle Messages, aimed to determine if this basic income could help people secure long-term housing.

Results indicated that after one year, nearly half of the participants who received the payments secured housing. However, a comparable percentage of the control group, who did not receive the funds, also found housing. This suggests that for many, homelessness, though destabilizing, is often temporary.

The majority of the cash assistance was spent on essential needs such as food, housing expenses, and transportation. Spending on alcohol, cigarettes, and illegal drugs constituted only 5% of the total funds. Beyond necessities, the money allowed participants to address personal needs, maintain transportation for work, and reconnect with family.

While the US$750 monthly payments did not substantially change housing acquisition rates, they contributed to increased stability in other areas of participants' lives without causing harm. The study concludes that for basic income to effectively counter homelessness, payments would likely need to be larger or sustained longer, approaching local rent costs.