Austin's guaranteed income payments spent mostly on housing
For an entire year, 135 households in Austin received $1,000 every month.
AUSTIN (KXAN) — For an entire year, 135 households in Austin received $1,000 every month.
It was part of the city's guaranteed income pilot, which tested how direct cash might help individuals and families with low incomes.
The guaranteed income pilot was put on by UpTogether, a national nonprofit that worked with 10 community-based partners to raise more than $500,000 of additional funds for the program.
Those cash transfers ended in August 2023, and a new report revealed what a majority of that money was spent on.
Housing stability
Urban Institute surveyed each participant to see how they spent the money. They found that participants spent, on average, more than half of their cash to cover housing costs.
"By the end of the 12-month period, pilot participants had become substantially more housing
secure," the report said.
After the year-long payments, 14% more people were caught up on their mortgage or rent.
"The vast majority of folks in this pilot do not have any kind of public subsidy for their rent. So where they use the cash was on rent," said Mary Bogle, Principal Research Associate for the Urban Institute.
The report also found that fewer people had the likelihood of having to leave their homes in the next two months due to eviction or foreclosure.
"Probably one of the biggest findings from our reports is that the cash did improve housing stability quite a bit," Bogle said.
Employment status
Participants' employment stayed relatively stable throughout the pilot program, according to the report.
Among participants, 9% of people said they worked for less time because of the extra money and that they were able to use that time for other things.
"They spent the extra time on skills-building with the aim of securing a higher-quality job and the other half taking on additional care commitments, such as spending more time with their children," the report said.
Mental health impacts
When it comes to participants' mental health while on this program, the report found the highest level of improvement at the six-month mark.
"What that bump is about is people sort of clearing their headspace," Bogle said.
The report found 12% of people had a "substantial relief from depression."
Feeling anxious and depressed stayed at or near six-month levels by the end of the pilot.
However, a majority of participants reported that they were “not able to stop worrying.” The feeling increased by 6% above the baseline by the end of the pilot, according to the report.
Better food security
Most people faced food insecurity before taking part in this program.
"Folks weren't, you know, cutting meal sizes or skipping meals to make their food budget work as much," Bogle said.
The report found a significant decrease in that by the end of the 12 months.
"Participants were notably more likely to be able to afford balanced meals as a result of the cash payments," the report said.
Ultimately, Bogle said these funds allowed people to pay for their basic needs and figure out ways to improve their lives.
Whether that was saving up to get a car or paying for classes to get a promotion, it was money well spent.
"People are using the cash, the flexibility of the cash, to solve their dilemmas, especially their barriers to work," Bogle said.
'There right on time'
Last year, KXAN spoke with Taniquewa Brewster.
She spoke about her plans after she was chosen to be a part of the guaranteed income pilot program.
Taniquewa Brewster is a single mother of five children, who received $1,000 direct deposits each month for an entire year through Austin’s guaranteed income program. (KXAN Photo) 
Taniquewa Brewster is a single mother of five children, who received $1,000 direct deposits each month for an entire year through Austin’s guaranteed income program. (KXAN Photo)
"My family was actually one of the families that was chosen for that," Brewster said.
The mother of five told KXAN she used that money to help with hospital costs at the time.
"That money was just there right on time because it helped me to pay some of that down," Brewster said. "It helped me to buy medication that I would not have been able to afford."
Will the guaranteed income program continue?
In September 2023, the City of Austin created another guaranteed income program.
Originally, the City of Austin allocated $1.1 million of taxpayer dollars to support 85 individuals facing extreme financial hardship.
Extra allocation of philanthropic funds allowed for 50 more participants.
The Austin City Council allocated $1.3 million within its new budget to pay for another guaranteed income program.
It will fund $1,000 a month for at least 85 families this year.