Tacoma Mayor Victoria Woodards, Mayors for a Guaranteed Income, and the United Way of Pierce County recently shared independent data from the Growing Resilience in Tacoma income program pilot, which shed light on the positive impact of the program on families considered asset-limited, income-constrained, and employed.
The GRIT pilot gifted $500 a month to 110 ALICE families in Tacoma from December 2021 to December 2022. The monthly deposits were unconditional and allowed families to spend the funds in any way they desired, a press release from the UWPC said.
Researchers found that participating ALICE families saw significant improvements in financial stability, an increase in stable full-time employment, less food insecurity, and a reduction in income volatility than a control group of Tacoma residents with similar living conditions.
“So many people are working very hard but don’t make enough to be able to get ahead,” said Michael D. Tubbs, founder of Mayors for a Guaranteed Income, in the release. “The GRIT program targeted families who are largely excluded from our social safety net, because they earn just a little too much to qualify for federal benefits, but still don’t receive a living wage. Giving these families a hand up is common sense, and data shows it’s good policy for the city, too.”
“I’m very proud to see these results, which confirm that our initial investment had a meaningful impact on the lives of the people who received the guaranteed income. As we continue to distribute recurring cash support with GRIT 2.0, I hope that Tacoma can serve as an example that informs state and federal policy efforts to address poverty,” added Woodards in the release.
Program recipients increased their income above the control group and sustained the change for at least six months after payments ended.
Families saw major improvements in financial resilience and the ability to manage funds for emergency expenses. The percentage of GRIT recipients who have more than $500 in savings increased throughout the study, whereas the control group saw a decline in percentage.
The proportion of participants who identified as stay-at-home parents or caregivers remained 10% higher in the control group than the GRIT recipients across the study period.
“I feel like people view (people receiving benefits) as being lazy or just taking advantage of the system, and I’m like, 'Well, that’s not necessarily the case for everybody.' A lot of them have disabilities or things like that that prevent them from being able to make a reliable or stable income,” said one participant in the release. “And I’m in the position where I could probably benefit from assistance: I have a degree and everything, and I’m still kind of struggling to not be homeless on the street in this market.”
The study period coincided with a time of high inflation and rising food costs where both groups in the study experienced food insecurity, the release noted.
Those expressing concerns about food insecurity during the study grew from 42% to 53% in the recipient group, whereas the control group’s concerns grew from 45% to 68%.
Recipients displayed reduced cost burdens for housing and reported the ability to transition into higher-quality homes and more desirable neighborhoods.
“The GRIT pilot has proven what we’ve long believed: a modest, unconditional cash investment can transform lives. From improving financial stability and employment opportunities to reducing food insecurity, these results show the profound impact of investing directly in ALICE families working hard but remaining vulnerable,” said Dona Ponepinto, president and CEO of the UWPC, in the press release. “This is a step forward in addressing poverty and creating pathways to a stronger, more resilient community.”
Following the success of GRIT, the city of Tacoma and the UWPC are expanding the initiative with GRIT 2.0 in partnership with the Washington State Economic Services Administration to boost the financial security of low-income and single-head households with children.
Research from other cities participating across the U.S. such as Stockton, California; Saint Paul, Minnesota; Cambridge, Massachusetts; Paterson, New Jersey; Richmond, Virginia; and more have found corresponding data to Tacoma’s pilot program, the release said.
