Providence Extends Guaranteed Income Program

PROVIDENCE, RI — Providence officials will gather data and assess their guaranteed income pilot program for at least six months longer. Mayor Jorge Elorza and other stakeholders announced that further American Rescue Act dollars will go to fund the program.

"I am excited to stand with community partners and City colleagues to announce this extension of the Providence Guaranteed Income pilot program," said Elorza.

"This six-month extension will allow us to even better understand the impacts and outcomes of guaranteed income, especially as we continue to recover from the COVID-19 pandemic. For many individuals and families, this income is life-changing, helping some our city’s lowest-income residents to get back on their feet."

A guaranteed income is a monthly cash payment given directly to individuals, empowering recipients to address their most urgent needs and providing a cushion for unpredictable expenses, external shocks, and income volatility. It is unconditional and is meant to supplement, rather than replace existing social safety net programs, officials said.

The program began in July 2021, when 110 individuals were randomly selected for the PVDGI pilot program by the Center for Guaranteed Income Research (CGIR) research team from a pool of more than 4,000 applications, collected during a one-week application window in August 2021.

To be eligible for the program, applicants were required to be Providence residents with an income at or below 200 percent of the Federal Poverty Level.

Ultimately, 110 Providence residents have been receiving monthly $500 payments since November of 2021, which were previously scheduled to end in October of this year. Now, the program is guaranteed to continue through at least the beginning of 2023.

The six-month extension will use $500,000 of ARPA funding. The pilot program will continue to be administered by Amos House and Dorcas International.

"The Mayor's guaranteed income pilot has been a blessing to the families who have been chosen for the program," said Eileen Hayes, Amos House President & CEO.

"The incentive has allowed folks to breathe more freely in these times where prices for things like food, rent and housing have been soaring. I spoke to one woman who has been literally homeless for the past five years who has just gotten the keys to her own apartment, and she was excited to have the funds to buy furniture and other necessities. She let me know that the Mayor's guaranteed income has allowed her to save for this moment that she has been waiting on for a very long time."

According to the CGIR research team, the randomly-selected participants of the PVDGI program are 76 percent female and 24 percent male. The median reported monthly income is $913.

The race and ethnic makeup of participants are 45 percent Hispanic or Latino, 31 percent White, 19 percent Black, 5 person Asian and 38 percent identified as another race, meaning they could identify as multiracial or as an ethnic makeup not identified.

More than 60% of the participants have children under the age of 18 and the median participant age is 39 years old, with 61 percent of participants between the ages 25-44 and 29 percent between the ages 45-64.

“It’s a relief to be a part of this pilot because if I need something, I can go get it," said Brandi Landry, Providence resident and PVDGI participant.

"It feels good to know I can get things for myself, which is something I haven’t been able to do in a very long time.”