Denver, CO
Denver gave people experiencing homelessness $1,000 a month. A year later, nearly half of participants had housing.
Jarun Laws lived in his car in a restaurant parking lot near downtown Denver. He worked there as a cook until 2020, making about $400 a month. That was barely enough to cover his car payments and child support — and not even close to what he would need for rent.
The 51-year-old occasionally spent part of his paycheck on weekend stays at a cheap hotel, where he could spend time with his children. He struggled to afford food, clothes, and medicine — and he had been experiencing homelessness for nearly a decade.
That changed when Laws enrolled in The Denver Basic Income Project. The pilot program allowed Laws to secure a temporary apartment with furniture, spend more time with his children, and find a better-paying job.
“I had questioned myself: if I was going to be a good father to my children because I was suffering,” Laws previously told Business Insider. “When I got accepted, it changed my life.”
Denver’s basic income pilot — which first started payments in fall 2022 — focused on over 800 Coloradans experiencing homelessness, including people living in cars, temporary shelters, the outdoors, or other non-fixed living situations. Participants like Laws were given direct cash payments, no strings attached, and could spend the money on whatever they needed.
Denver released the project’s one-year report on June 18, showing that 45% of participants secured their own house or apartment after receiving basic income for 10 months. They also experienced fewer emergency room visits, nights spent in a hospital or a temporary shelter, and jail stays. The report estimates that this reduction in public service use saved the city $589,214.
Denver’s program initially lasted one year and was extended in January for another six months. Participants were sorted into random groups: one received $1,000 a month for a year; another got $6,500 upfront, followed by $500 a month; and a third got $50 a month as a control group.
The city of Denver, the Colorado Trust, and an anonymous foundation funded the project and has already provided more than $9.4 million to participants.
Basic income programs like Denver’s have become a popular strategy to reduce poverty in US cities. Compared to traditional social services like SNAP or Medicaid, basic income allows participants to spend the money where they need it most.
“What is fundamentally different about our approach is the way that we start from a place of trust,” Mark Donovan, the project founder and executive director, said at a Tuesday press conference.
Denver’s basic income project helped participants secure housing and jobs
Denver’s report found that basic income primarily helped participants pay for immediate expenses — like transportation, hygiene, clothes, and groceries. Affording recurring bills like rent, healthcare, or debt payments was also a top priority for most families. Participants in each payment group reported increased financial stability and reduced reliance on emergency financial assistance programs.
Basic income puts low-income families on “an equal playing field,” Nick Pacheco, participant engagement coordinator, said at a press conference. He said the cash payments also help participants get the training and resources they need to establish careers.
Individuals who received the lump sum or $1,000 a month payments were more likely to find a stable, full-time job than before they received basic income.
“It’s freedom,” Pacheco said. “It’s freedom from poverty and not being able to reach your goals.”
Participating households also experienced improved mental health and could spend more time with family and friends. Parents were able to better support their children and grandchildren.
These results echo those from the six-month report, which found fewer participants were sleeping on the street, experiencing food insecurity, and feeling unsafe.
Still, participants’ financial outcomes varied based on their payment group. Participants who received the lump sum $6,500 payment in addition to $500 a month could better build savings and make major life changes like signing a new lease or buying a car.
Many families told researchers that they’re anxious about paying bills after the basic income payments end. Some worry they could lose their housing again.
Laws, for example, had to go back to living in his car after his payments stopped.
Being able to pay bills alleviated participants’ financial stress
Denver participants have told BI that basic income was the financial safety net they needed.
Moriah Rodriguez, 38, was working as a youth developer for Denver Public Schools when she got hit by a car and suffered a traumatic brain injury. She lived in public housing with her kids, all of whom have intellectual disabilities, though they were displaced shortly after.
She received monthly Social Security payments, just enough to care for her kids. While staying with a friend, she learned about the pilot program.
Rodriguez used the payments to fix her truck, transport her kids to school and work, buy new clothing, and secure a lifelong public housing voucher. She also used some of the money to pay $400 for rent, $500 on gas, $100 on hygiene, and $100 on her credit card bill. In addition to returning to school to get her GED, she brought her credit score into the 700s.
“The program gave me more time to focus on their education and their mental health,” Rodriguez said, referring to her children, and added that the program’s extension was another lifeline. “I had the space to get them tested and get them diagnosed and connected with the support they need.”
Similarly, Dia Broncucia, 53, and Justin Searls, 45, could also afford essentials like an apartment, a new car, and mental health resources through basic income. They had previously lived in a temporary shelter but could secure a studio apartment for $1,300 a month, along with clothing, hygiene products, and furniture.
Broncucia and Searls said last October that though they had some uncertainties about their future, they felt much stronger and less stressed because of basic income.
“Starting with nothing and then being able to receive a lump sum of money and then get our payments once a month is why we were able to get on track and stay on track,” Broncucia previously told BI.
Basic income pilots can provide poverty solutions
As the basic income pilot continues to be successful in cities like Denver, local leaders and economic security experts are looking to translate pilots into policy. States like California and New Mexico are already proposing basic income programs in the state legislature.
“The lessons from those pilots are infusing the whole ecosystem of support,” Teri Olle, director for Economic Security California, a branch of the nonprofit Economic Security Project, previously told BI. “People are really seeing the power of those pilots, and the power of giving people money and trusting them.”
Denver leaders also hope to extend the city’s basic income for a third year. The project is currently raising the millions of dollars necessary to continue efforts in Colorado.
Donovan said he’s paying close attention to results from basic income programs across the country. It’s a “really exciting time in the movement,” he said.
“If we’re able to move people into housing and out of homelessness at a lower cost and generate better long-term outcomes, why wouldn’t we try to expand and build upon that?” Donovan said.
Have you benefited from a guaranteed basic income program? Are you willing to share how you spent the money? Reach out to these reporters at allisonkelly@businessinsider.com and nsheidlower@businessinsider.com