Oakland gave cash to low-income residents. A new study says it helped, but whats next?

Oakland's guaranteed income program, initiated in 2021, provided $500 monthly to 600 low-income families and has shown promising results, according to a new report. Participants' full-time employment rates increased from 15% to 26%, contrasting with the control group's 18%. The study also indicated that the academic performance of children in participating families remained stable, with 24% consistently earning “A” grades. Critics who argue that cash assistance could discourage work are countered by these findings, which suggest that financial support can enhance job stability. The program was designed to combat poverty and was entirely funded through private donations, showcasing a community-driven effort.

As Oakland grapples with a financial crisis and impending leadership changes, the future of the guaranteed income model is uncertain. The research adds to a growing body of evidence supporting direct cash transfers as a potential solution for economic stability. This pilot program in Oakland follows similar initiatives in other cities, reflecting a broader trend toward guaranteed income policies across the United States.