100 families will receive $18,000 in direct cash payments
United Way Bay Area (UWBA) has announced the launch of its first guaranteed basic income pilot program in Alameda County. The first payments of $3,000 went out to 100 families on November 18, and program recipients will then receive $1,000 per month for the next 12 months, with amounts tapering for the final six months.
“Poverty is not an individual failing, it’s a policy choice,” said United Way Bay Area CEO Keisha Browder. “We followed the research and it led us to direct cash payments, an innovation proven to break the cycle of poverty. The Bay Area is a place where many people thrive, while others struggle to survive. By targeting support to these first 100 families, we want to understand how unconditional cash assistance offered alongside optional financial coaching services impact wellbeing and behavior. Our goal is to learn from this pilot program and replicate a successful effort across the Bay Area and beyond.”
Families will receive monthly cash stipends and customized financial coaching and planning as part of this innovative approach to ending poverty in the Bay Area. The monthly stipend will help relieve immediate financial stress while the free financial coaching and planning services will help to build the skills needed to reach economic security in the long term.
The 100 families participating in this pilot program were randomly selected from client rosters at three Alameda County SparkPoint™ centers—SparkPoint Chabot College, SparkPoint Fremont (at Fremont Family Resource Center), and SparkPoint Oakland (at East Bay Asian Local Development Corporation (EBALDC). SparkPoint is a cornerstone in UWBA’s poverty-fighting efforts, creating pathways to financial prosperity for individuals and families long-term by addressing all aspects of their financial health, including employment support and financial coaching along with meeting urgent basic needs.
Program parameters such as payment models, eligibility criteria, and evaluation were determined in a collaborative stakeholder design process between January and April 2024.
Albertsons Companies Foundation, locally known as the Safeway Foundation, provided a $3 million grant to United Way Bay Area to support this effort, part of the Foundation’s Nourishing Neighbors program, which seeks to ensure at-risk children, adults, seniors and families have access to the food they need to thrive.