$800/Month Basic Income Pilot Program Considered For Certain Prince George's Residents

PRINCE GEORGE'S COUNTY, MD — A resolution creating a pilot program that guarantees $800 per month income to 200 Prince George's residents has passed out of committee.

The program would extend a monthly cash payment to individuals for 24 months. The proposed recipient could include families with children 12-18 years old, particularly single parent caregivers, returning citizens, senior citizens and people experiencing homelessness or housing instability.

"We understand the need to study a program like this to uplift some of our most vulnerable residents and we would like to find a way to fund this pilot program in a way that does not put any additional strain on our county budget. I would also like to see this program used to help those who are aging out of the foster care system and need some assistance," Prince George's County Executive Angela Alsobrooks said.

The total cost for the pilot program stands at $4 million. The Greater Washington Community Foundation plans to commit $1 million to help seed the pilot program and has secured a commitment from a local foundation to provide an additional $1 million if the county can secure the remaining funding.

A committee would be formed to create and oversee the program.

Alsobrooks noted that such pilot programs have been studied for decades, most recently in Stockton, California, in 2019.

"The program provided cash payments to 125 people over a two-year period. It was a well-studied pilot, which confirmed that when vulnerable residents receive these payments, their lives improve significantly," Alsobrooks said.

During the two-year pilot program in California, there was a control group and a group that received the cash payments. When the program started, only 28 percent of those receiving cash payments had full-time employment. Within a year, 40 percent had secured full-time employment. Meanwhile, 32 percent of residents not receiving cash payments had full-time employment at the start and only 37 percent did after one year.

In addition, 52 percent of those receiving cash payments were paying off debts at the start of the program. In one year, that number climbed to 62 percent. Over the same period, the residents not receiving cash payments saw a decrease in those paying off debts, from 48 to 44 percent.

"Residents participating in the program reported decreases in anxiety and depression, and expressed more optimism about their futures. This is just one example of how guaranteed basic income programs can change lives. We have heard from residents who continue to struggle to meet basic needs due to inflation and other factors, and need some additional support," Alsobrooks said.