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Two years ago, a city in Colorado set out to answer a question: Can giving residents $500 a month with no strings attached meaningfully improve their lives?
For the 200 residents who participated in the program, the answer has been mixed. Although the payments eased some immediate challenges, long-term or structural issues persisted.
Boulder is one of a growing list of American cities and states experimenting with a guaranteed basic income, a system in which governments provide some residents with recurring cash payments they can spend as they see fit. People who qualify for guaranteed basic income programs typically fall below the federal poverty line or belong to a specific demographic, such as households with children.
Such programs differ from a universal basic income, which provides cash payments to an entire population, regardless of income levels or other parameters.
While basic income programs have been around for a long time, they have surged in popularity in recent years, driven in part by the AI revolution. Some prominent tech leaders have advocated for a universal basic income to offset potential income loss as AI increasingly takes over human jobs. Others, however, have called the idea a “fantasy.”
In 2023, Boulder decided to give it a try. Through a program called Elevate Boulder, and using $3 million in American Rescue Plan Act funds, the first payments were dispersed in January 2024.
“We saw the data reflect that when financial strain drops, so does the toll on mental and physical well-being. However, long-term financial challenges like affording childcare, healthcare, and building financial assets saw little change after 20 months of $500 payments,” Sara Bayless, managing director at the Omni Center for Social Investment, a nonprofit consultancy that partnered with the city to evaluate the program, told Business Insider in a statement.
“This suggests that while modest, consistent cash can ease immediate pressures, financial barriers remain that may only be responsive to larger investments and systemic solutions.”
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‘Meaningful improvements’
The Omni Center evaluated dozens of participants to determine the program’s impact.
“Over the 20 months of receiving monthly $500 cash assistance, respondents reported meaningful improvements in their ability to afford many basic needs as well as their mental and physical health,” the firm said. “All areas of significant change represent improved outcomes.”
Specifically, recipients said the cash assistance made it less difficult to obtain basic necessities like housing and food. They said the payments also helped reduce stress.
“Food insecurity declined significantly, though on average, respondents continued to experience low food security. Reports of difficulty affording rent or mortgage and utilities also decreased significantly, and concerns about future housing affordability lessened,” the Omni Center said. “Psychological distress was significantly lower while receiving $500 a month, and by 20 months, respondents were more likely to rate their overall health positively.”
Cash doesn’t fix everything
The report said the payments provided by Elevate Boulder did not address all concerns, however, including childcare and healthcare.
“In other areas of respondents’ lives, there were no demonstrable changes during the time they were receiving monthly payments,” the nonprofit said. “Childcare affordability remained a barrier for those with children, with no improvements detected. Health insurance coverage and delays in seeking healthcare did not change.”
The report also cited transportation, employment, savings, and debt as areas with no significant changes.
“Employment rates were high, and employment status, the share of respondents working multiple jobs, and the alignment between work and life goals did not change significantly, though many respondents used Elevate Boulder funds to invest in additional training or education that may have long-term benefits that have not yet appeared,” the Omni Center said. “Similarly, average savings and debt levels remained stable, as did the proportion of respondents able to cover an unexpected $400 expense.”
The takeaway
The Omni Center said the most “consistent changes” were related to “immediate, recurring expenses and stress-related outcomes, suggesting that a predictable monthly cash infusion was associated with reduced reports of hardship in these areas.”
Structural or long-term challenges remained virtually unchanged after 20 months of $500 payments, however.
“This distinction suggests that some needs are responsive to modest, ongoing cash support, while others may require greater investments or broader systemic and structural interventions,” the nonprofit said.
In its report, the center told Boulder officials that “strategic changes” are necessary at the system level in addition to cash payments to achieve sustained progress in stability for low-income residents.
Representatives for the City of Boulder did not respond to a request for comment from Business Insider.
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