Alameda, CA's Guaranteed Income Pilot Shows Early Economic and Social Gains, Bolstering National Debate

A pioneering guaranteed income (GI) pilot program in Alameda, California, is demonstrating significant positive impacts on participants' financial stability, mental health, and community engagement after its first year, according to an interim report by Abt Global. The "Rise Up Alameda" program, which provides 150 low-income households with $1,000 per month for 24 months, offers compelling data that could inform broader anti-poverty policy discussions.

Launched in September 2023 with American Rescue Plan Act funding, Rise Up Alameda distinguishes itself by offering unconditional, unrestricted, and regular cash payments. Unlike traditional assistance programs that often earmark funds for specific expenses or require ongoing eligibility reviews, GI empowers recipients to decide how best to use the funds to suit their individual needs, fostering dignity and self-determination.

The study, designed as a randomized controlled trial by Abt Global, compared outcomes for participants receiving GI (the program group) against a similar control group of Alameda residents who did not receive payments. Researchers measured 40 outcome areas, finding improvements in 17 of them, or 42 percent, a rate higher than observed in many other city pilots nationally.

Key Findings After One Year:

• Improved Financial Well-being: Participants experienced enhanced financial stability and resilience.

  • Only 15 percent of Rise Up participants reported going into debt, a stark contrast to 42 percent of the control group.
  • Participants were significantly more likely to have money left over at the end of the month (13% vs. 1% in the control group).
  • They were nearly twice as likely to have saved $500 or more and marginally more likely to cover a $400 emergency expense.
  • GI also led to a statistically significant decrease in student loans and a marginal reduction in unpaid utility bills for participants.

• Better Mental Health and Less Stress: The program provided causal evidence that increased income improves mental health for low-income households.

  • Rise Up participants reported lower perceived stress and psychological distress. Their Kessler 10 scores, measuring psychological distress, were 14 percent lower on average than the control group.
  • They also felt more hopeful for the future, with average scores placing them in the "average" hope category, compared to the control group's "low" hope scores.
  • An elevated sense of interpersonal mattering was also observed, with participants scoring about 10 points higher on a scale measuring feelings of being noticed, valued, and needed by others.

• Greater Community Engagement: Rise Up fostered a stronger sense of belonging and community involvement.

  • Participants were 10 percentage points more likely to be involved in at least one community activity, such as religious groups, PTAs, or social clubs.
  • They scored higher on the Brief Sense of Community Scale, indicating a stronger feeling of belonging and importance to their community.

• Nuanced Employment Shifts: While overall work activity remained consistent with the control group, there were shifts in employment types and outlook.

  • Half of Rise Up participants reported working or being a full-time caregiver, similar to the control group.
  • However, 15 percent of Rise Up participants reported full-time employment, nearly a third less than the control group, suggesting a shift towards part-time work, caregiving, self-employment, or gig work.
  • Despite this, household incomes were higher for Rise Up participants, averaging $32,353 (including GI payments) compared to the control group's $24,132. This $8,221 difference, while less than the full $12,000 in GI payments, implies some participants may have reduced work hours, using GI to supplement income.
  • Unemployed participants at the start of the program reported feeling more hopeful about setting and achieving job goals.

Areas for Further Observation:

One area where the program did not show significant improvement after one year was housing outcomes. Although Rise Up participants were more likely to have mortgage debt, there were no statistically significant changes in home ownership rates, and the small sample size of those experiencing homelessness prevented definitive conclusions on GI's impact in this area. The high cost of housing in Alameda, where the median gross rent is $2,394 and the median household income is $132,015, likely plays a role, with GI payments potentially not yet sufficient for home purchase for most recipients.

Demographic Variations and Future Outlook:

The study also highlighted varying impacts across different demographic groups:

• Older adults (age 62 and older) were more likely to have money left over at the end of the month and increased doctor visits, whereas working-age adults were significantly less likely to go into debt.
• Participants with a high school diploma or GED (or less education) saw greater improvements in financial well-being, ability to cover unexpected expenses, and reductions in psychological distress and chaotic home environments, compared to those with more education.
• Individuals who were unemployed at the program's start experienced increased hopefulness and more doctor visits, while those already working were more likely to volunteer and take on gig work.

These interim results from Rise Up Alameda, with its monthly payment of $1,000 exceeding typical payments in many other cities, are highly encouraging and underscore the potential of guaranteed income to foster economic stability and overall well-being in high-cost-of-living areas. The City of Alameda and Abt Global will conduct a 24-month survey in December 2025, with a final report anticipated in 2026, which will provide a more comprehensive understanding of the program's long-term impacts and contribute to the national dialogue on anti-poverty measures.