A guaranteed basic income program in Washington, DC, allows participants to choose the size of their monthly checks. RobertDodge/Getty Images
- A basic income program in DC allows participants to choose the amount of their monthly payments, with no strings attached.
- Bread for the City’s CashRx pilot aims to improve health outcomes for low-income residents.
For Deborah Ogarro Kelly, $1,400 a month is what she needs to cover household medical expenses.
Kelly, 47, is unable to work because she is the primary caregiver for her husband, who is blind and has health problems. And since last fall, she has been participating in a guaranteed basic income program in the Washington, DC area.
Thanks to her husband’s SSDI disability benefit, the couple lives on a fixed income of less than $2,000 a month, separate from their guaranteed basic income. However, she often worries about paying rent, groceries and medicine.
Basic income has eased some of her financial anxiety, but she said “it’s still not enough” to feel stable.
“I want to be able to pay all my bills, manage my balance and not owe anyone anything,” Kelly told Business Insider. “It’s a lot, but I want to be able to work and I want my husband to get all the resources he needs.”
The basic income program Kelly is involved with is one of more than 100 pilot projects across the United States. Since 2019, GBI has become an increasingly popular strategy to combat poverty. The model differs from traditional social services like SNAP or Medicaid because participants can choose how to spend their money.
“There is a reduction in the barriers that guaranteed income provides and the real ability for someone to make the decision for their family about what is going to progress themselves,” Shafeka Hashash, associate director of the guaranteed income to the Economic Security Project. “I think guaranteed income is such a strong system.”
CashRx, the guaranteed basic income pilot that Kelly is participating in, is run by Bread for The City. The nonprofit organization provides medical, legal, food and employment assistance to low-income DC residents. All participants in the GBI cohort must be established patients at the Bread for the City medical clinic.
The year The basic income program, whose payments began in November 2023, allowed each of its five participants to choose the amount of their monthly checks without conditions. Kelly chose $1,400 per month because that’s what her family needs to offset the medical costs they have to pay. Other participants chose between $1,100 and $1,400 per month.
Funding for the program is provided by the Community Foundation’s Health Equity Fund – a $95 million fund created to address health disparities in Washington, DC – and several grants.
Although Bread for the City hopes to eventually expand the GBI pilot to 10 participants, the program is intentionally small. In a spring program report provided to BI, the nonprofit said its goal is to improve health outcomes for its clients by addressing circumstances such as economic instability and housing insecurity .
CashRx follows Bread for the City’s previous basic income program. It was an implementing partner of THRIVE East of the River, a basic income pilot that gave $5,500 to approximately 600 low-income families in Washington between summer 2020 and winter 2022.
Kelly still worries about money, but basic income makes her feel less ‘stuck’
Kelly feels like her expenses keep increasing. Most of her husband’s medications and appointments are her responsibility, and she also has to pay for her own health care needs. The couple has Medicaid, but the insurance doesn’t cover everything.
She pays several thousand dollars in rent for her apartment, and she’s not sure what she’ll do if her landlord increases the price or doesn’t renew her month-to-month lease. She tried to apply for a rental assistance voucher due to her husband’s health, but did not get one.
“Where are we going to go if money runs out in this situation?” Kelly said. “We don’t have anything stable.”
For food, Kelly said she and her husband qualify for assistance through SNAP, but it costs a little more than $100 a month and is usually not enough to pay for groceries.
On top of that, she said it was difficult to find money to pay for their transportation, cellphone bills, household necessities and the storage unit they need for their belongings.
Costs remain a concern, but Kelly said basic income is the financial help she and her husband need to continue supporting themselves. She still hopes to return to work one day. Her husband would like to work too, so Kelly hopes he can get the support he needs to maintain a part-time job.
“We’ve gotten a lot of things straight when it comes to the health and nutrition of our mouths,” Kelly said. “Without Bread for the City, we would still be stuck.”
Participants report that GBI helped them improve their mental health
Similar to Kelly, DC basic income participants told Bread for the City that cash payments allow them to afford housing and utilities, start saving for emergency funds, spend more time with their families and improve their mental health, according to Bread for the City’s spring program. report.
One participant told Bread for the City that he was able to get prescription glasses for his child, while others were able to purchase ingredients for foods that better fit their preferences and culture.
As basic income Programs across the United States face opposition from Republican lawmakers, Kelly wants more people to understand they can give people a chance to meet their basic needs. She is grateful for the help right now. And, at some point, she knows someone else will need help too.
“You give people a chance, and you see what they’re going to do, they do the right thing,” Kelly said. “And once I’m up, you can pass it on to the next person.”
Did you benefit from a guaranteed basic income program? Are you ready to share your story? If so, contact [email protected].
