Launched in 2022, Georgia’s guaranteed basic income pilot program, In Her Hands, has provided vital support to 650 low-income Black women, including 31-year-old Woods from Atlanta.
Per Business Insider, the program, run by The Georgia Resilience and Opportunity Fund and GiveDirectly, offered flexible monthly payments for two years, allowing participants to manage their financial needs as they saw fit.
Divided into two groups, the participants received different payment amounts designed to test various financial support models. While the program has ended, Woods expresses her hopes and concerns for her and her daughter’s future in Atlanta.
The pilot is part of a larger trend in the US aimed at supporting low-income individuals through basic income initiatives.
Georgia Basic Income Participants Felt More Financially Stable and Housing Secure
Women in the Georgia Basic Income (GBI) pilot showed signs of improved financial stability. They were less likely to miss payments for phones and utilities. Bank overdrafts and late credit card payments were also less common.
These women had fewer financial stresses, which allowed better access to medical care and a reduction in anxiety or depression.
Housing security also improved for GBI participants. The number of home evictions and utility shut-offs decreased. Women in the program paid their rent on time and had better access to nutritious food.
Financial and Education Benefits
- Higher Education Enrollment: Participants were 60% more likely to enroll in higher education. Many took advantage of this to pursue degrees, certifications, or business licenses.
- Savings for Children’s Education: Mothers in the program saved for their children’s education 13% more than those not in the program.
- Children’s Activities: Parents used some of the basic income for their children’s activities like summer camp and cheerleading.
Observations and Future Insights
These changes reflect the short-term impacts of the GBI program. The final analysis of the second year, due at the end of 2024, will provide more insights.
It’s unclear if these short-term benefits will lead to long-term stability. Economic experts debate the sustainability of basic income as a policy. The data is based on the participants’ reported experiences.
Basic Income Faces Opposition, Georgia Continues Programs
In San Francisco, a program providing $1,000 a month to pregnant Black women faced legal challenges last year. A conservative public interest firm argued that the city’s use of public funds for such payments was illegal, mainly because the program selected participants based on race.
Despite this, the Georgia Resilience and Opportunity Fund and GiveDirectly remain committed to cash aid for low-income women in Georgia.
They pressed forward with the second phase of their “In Her Hands” initiative, which began in May. This new phase connects around 270 Black women in Atlanta neighborhoods like English Avenue, Vine City, Bankhead, and Washington Park with financial assistance.
The participants had a choice: either receive $1,000 monthly for three years or accept $800 each month for three years, along with an $8,000 lump sum at a chosen time.
Additionally, the Georgia Resilience and Opportunity Fund has plans for a “baby bonds” pilot starting in early 2025. This six-year program aims to provide trust accounts of $40,000 for 250 babies in Georgia’s Black communities.
Their families would also receive $500 monthly in basic income. This initiative follows a similar program in Connecticut and aims to reduce infant and childhood poverty.
Despite uncertainty, Woods, a participant of Georgia’s pilot, highlighted the program’s benefits in teaching her to manage her family’s finances. According to her, this financial stability is crucial for her daughter’s future education and opportunities.