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BIG:LEAP – Basic Income Guaranteed: Los Angeles Economic Assistance Pilot

The City of Los Angeles has created the largest Guaranteed Income pilot in America, leading the nation in bold initiatives aimed at confronting poverty.

Innovation Summary

Innovation Overview

Poverty touches the lives of more than 38 million people living in America today — close to twelve percent of the U.S. population. Poverty affects two out of every 10 residents in the City of Los Angeles — most of them people of color. Thirty-one percent are children. One-third of working adults in Los Angeles aren’t able to support their families with full-time work alone. The relentless poverty experienced by too many Angelenos emerges out of a lack of financial resources, not a lack of judgment. While Angelenos are doing everything in their power to achieve financial security, the burdens of a high cost of living, unaffordable housing options, and insufficient wages too often exceed families’ ability to confront those challenges on their own — and we know that the economic difficulties caused by COVID-19 will outlast the pandemic itself. Employment alone cannot always break the cycle of poverty, and research has consistently demonstrated that direct cash aid is a powerful tool for ensuring greater stability for vulnerable Americans.

Basic Income Guaranteed: Los Angeles Economic Assistance Pilot is providing approximately 3,200 individuals with $1,000 per month for 12 months. These are unconditional, regular, and direct cash payments to individual participants that supplement existing welfare programs. This means there are no restrictions on how the money can be spent and no requirements for the participants. GBI programs are founded upon the belief that the people enduring financial instability or poverty are best positioned to make informed financial decisions that efficiently address their household’s needs— whether that means paying for rent, a new tire, or an unexpected trip to urgent care. These participants are granted the freedom to meet their most pressing needs without delay.

Furthermore, the participant’s financial future becomes more secure and predictable, providing families the resources to address problems before they lead to larger and costlier burdens. Through BIG:LEAP, Angelenos are empowered to forge their own path towards financial security. While no single program can reverse decades of economic and racial inequality that marginalize low-income people of color, BIG: LEAP can point the way towards a more equitable and prosperous future.

The objectives of BIG:LEAP extend beyond providing immediate financial relief. They include:
  • Providing financial relief: Offer immediate and ongoing financial support to individuals affected by poverty and the aftermath of COVID-19.
  • Growing research: Conduct a thorough assessment of the GBI program to evaluate its effectiveness, enabling other government entities to consider implementing similar programs on a larger scale.
  • Reforming policy: Influence federal and state regulations that currently limit the City's ability to offer direct cash assistance using existing grant funds.
  • Transforming the role of local government: Allocate local funding to City departments and empower them to implement bold, comprehensive programs to uplift vulnerable residents from poverty.
  • Increasing assets and opportunities to build generational wealth: Connect participants with external financial resources to help them build wealth, encouraging savings, establishing long-term financial goals, and gradually building intergenerational wealth to break the cycle of poverty.
  • Connecting families to LA’s social safety net: Integrate participants into the city's network of resources to support their journey toward financial security.

Innovation Description

Innovation Development

Collaborations & Partnerships

The Center of Guaranteed Income Research at the University of Pennsylvania is working with the city to gather data and conduct research on the program's efficacy. This partnership highlights the importance of research and data analysis in evaluating the impact of GBI and informing future policy decisions

Innovation Reflections

Results, Outcomes & Impacts

The benefits of BIG:LEAP reach various stakeholders: Direct recipients: 3,200 individuals receive $1,000 per month for a year, allowing them greater financial stability and the ability to address their needs. Low-income communities: The program aims to uplift communities disproportionately affected by poverty, particularly people of color who constitute the majority of those living in poverty in Los Angeles. Researchers: The program provides a valuable opportunity to study the effects of GBI and gather data that can inform future policies and poverty interventions. Policymakers: Data from the program can be used to advocate for policy changes at the federal and state level to expand the social safety net.
Year:
Level of Government: Local government

Status:

  • Implementation - making the innovation happen

Innovation provided by:

Date Published:

5 November 2024

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