Researchers find that young people see tangible benefits with $350 monthly guaranteed income.
NEW ORLEANS — Mayor LaToya Cantrell, the Mayor’s Office of Youth and Families (OYF) and Mayors for a Guaranteed Income today announced the release of independent data on the New Orleans Guaranteed Income Program, showcasing higher employment rates, improved financial well-being and better housing security.
The New Orleans Guaranteed Income Program provided $350 a month for 10 months to 125 young people between the ages of 16-24. Initiated by Mayor Cantrell and operated by OYF, the program focused on young people in Orleans Parish who were disconnected from work and school, with the goal of supporting these “opportunity youth” to connect to education and employment opportunities. OYF partnered with nine community-based organizations to refer participants to the program, including ALAS, Collegiate Academies, Healthy Start, New Orleans Public Schools, Youth Empowerment Project, New Orleans Youth Alliance, Louisiana Center for Children’s Rights and Educators for Quality Alternatives. In addition, OYF partnered with United Way of Southeast Louisiana to provide benefits counseling to all participants.
“It’s imperative that we recognize how financial instability contributes to some of the most pressing issues facing our communities, including physical and mental health, employment and job security, parenting, substance abuse and more,” said Mayor LaToya Cantrell. “We designed the New Orleans Guaranteed Income Program with the understanding that every person and their families have a different set of needs. This program has given our youth the power and autonomy to make the choices that most benefit them, aligning with my administration’s goals to create a more inclusive and equitable city for generations to come.”
Key findings include:
- Increase in employment — The increase in full-time employment was statistically significant, going from 6 percent at the outset to 21 percent after the program. Income volatility decreased by nearly 20 percentage points over the course of the program.
- Improved financial stability — Shifts in financial well-being over the course of the program indicate a positive trend over time, with fewer individuals falling into the lower well-being categories and more transitioning into higher well-being statuses.
- Alleviated housing cost burden — Despite general market trends of increasing rents and housing costs, the percentage of participants reporting a housing cost burden exceeding 50 percent of their income declined over the course of the program. Notably, homelessness was only reported during the Baseline evaluation, indicating a potential improvement in housing situation over time.
One guaranteed income recipient explained the benefit, stating, “I went to an actual coding boot camp. I made it to a grade level, and it was at a point in time when my computer had broke. I was really wondering, ‘Wow, how am I going to get another computer?’ Then it just popped. I remembered my GI payment card, and I was able to go get the computer problem solved without any stress. It made me feel great, because if I wouldn’t have had it, it would’ve been totally different.”
“Young people growing up in poverty face an enormous set of obstacles to success, and the results of this program prove that most of them just need a little more financial stability in order to pursue their dreams,” said Founder of Mayors for a Guaranteed Income Michael D. Tubbs. “More than a dozen studies have shown that guaranteed income not only helps people meet their basic needs, it also increases employment rates, improves housing security and gives people a sense of hope and agency. Guaranteed income works, and Mayor Cantrell has shown the kind of forward-thinking leadership that we need across the nation to help the next generation succeed.”
The New Orleans Guaranteed Income Program is affiliated with Mayors for a Guaranteed Income, a coalition of over 160 mayors and growing. The research findings from New Orleans build upon similar results from the mayor-led guaranteed income programs in
Stockton, Calif., Saint Paul, Minn., Cambridge, Mass., Paterson, N.J., Richmond, Va. and Baltimore, Md. where researchers found increased employment, greater financial stability, more parent-child time and a better level of overall well-being.
Read the full report on the New Orleans Guaranteed Income Program here.
About Mayors for a Guaranteed Income
Founded in June 2020 by former Stockton, Calif. Mayor Michael Tubbs, Mayors for a Guaranteed Income is a coalition of nearly 160 mayors committed to advancing a federal guaranteed income – direct, recurring cash payments to middle and low-income people. Expanding to include City and County legislators in 2023 with Counties for a Guaranteed Income, the network acts as a research and resource hub for municipal pilots around the country, with nearly 60 and counting. A new documentary film “It’s Basic,” which premiered at the Tribeca Film Festival in June 2023, follows recipients and illuminates the life-changing impact of guaranteed income programs on families’ economic security and opportunity.
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