- A guaranteed-basic-income program in Austin gave people $1,000 a month for a year.
- Most of the participants spent the no-strings-attached cash on housing, a study found.
- Participants who said they could afford a balanced meal also increased by 17%.
A guaranteed-basic-income plan in one of Texas’ largest cities reduced rates of housing insecurity. But some Texas lawmakers are not happy.
Austin was the first city in Texas to launch a tax-payer-funded guaranteed-income program when the Austin Guaranteed Income Pilot kicked off in May 2022. The program served 135 low-income families, each receiving $1,000 monthly. Funding for 85 families came from the City of Austin, while philanthropic donations funded the other 50.
The program was billed as a means to boost people out of poverty and help them afford housing. “We know that if we trust people to make the right decisions for themselves and their families, it leads to better outcomes,” the city says on its website. “It leads to better jobs, increased savings, food security, housing security.”
While the program ended in August 2023, a new study from the Urban Institute, a Washington, DC, think tank, found that the city’s program did, in fact, help its participants pay for housing and food. On average, program participants reported spending more than half of the cash they received on housing, the report said.
The same is true of a lot of average apartment buildings, especially college housing, but they are rigourously maintained by staff.
Public housing in the US is rarely funded enough or maintained properly. It’s almost a cliche in the US, municipalities purposely underfund public programs so they fail, to encourage privatization.
This might sound surprising, but that’s because people are paying for it, and there are consequences for trashing the place (forfeiting deposit etc.)
I’m talking about state owned public housing, which is almost always a catastrophe. And that’s not just because of lack of funding, but because the people who live there have no sense of ownership, and suffer little to no consequences if they don’t keep it in shape.