Denver allocates $2 million for basic income to help people out of homelessness

As American cities and counties work to end homelessness, one intriguing concept that’s gaining traction across the nation is providing a basic income to those in need. The latest city to invest its own money into this concept is Denver, where the City Council has approved a $2 million contract with the Denver Basic Income Project—building on the nonprofit organization’s private funding to expand its reach.

The money, which comes through the American Rescue Plan Act, will be distributed to a select group of those in need as a way “to quickly and cost-effectively move people out of homelessness and back into housing,” reads an announcement posted by Denver’s local government. The funding aids work being done by the Denver Basic Income Project, a nonprofit experimental initiative that, with the added funding, is providing direct cash payments to 820 individuals and families experiencing homelessness. The city’s contribution is being led by the Department of Housing Stability and specifically provides a basic income of $1,000 to about 140 women, transgender and gender non-confirming individuals, and families in shelters.

“Just as important as housing and shelter is a regular source of income for those experiencing homelessness,” said Mayor Michael Hancock in the statement. “This direct cash assistance will help more than 140 women and families currently in shelters move into stable housing, and provide support so they can stay housed, while opening space in our shelters to serve more people.”

According to the statement, the Denver Basic Income Project, which launched last year as a privately funded initiative, works with individuals ages 18 and older who are experiencing homelessness and are connected with a partner service provider. To be eligible, recipients can’t have a severe or untreated mental health or substance use concern.

Providing basic income to homeless people is a growing initiative that’s gaining traction across the United States. Fiscally, the idea is that providing homeless people with assistance to find housing will save communities money in the long run by cutting down on the cost of services.

Peer cities that are experimenting with similar programs include Los Angeles and Stockton, Calif.; Vancouver, Canada; Richmond, Va.; New Orleans; Providence, R.I.; Evanston, Ill.; and New York, among many others. The statement notes these communities “are finding that basic income resulted in many positive outcomes, and research shows this approach supports: Increases in full-time employment; individuals moving to stable housing sooner; increases in spending on necessities and recurring staples, such as food, transportation and utilities; increased food security; and reductions in spending on alcohol, drugs and cigarettes.”

Most recently, in August, Baltimore launched its own initiative with $4.8 million in American Rescue Plan Act funds called the Baltimore Young Families Success Fund, providing payments of $1,000 per month over two years to 200 young parents between the ages of 18 and 24.

The Denver initiative is being monitored and studied by researchers at the University of Denver’s Center for Housing and Homelessness Research using a randomized control trial. Several measures are being monitored over the course of the program, such as housing outcomes, utilization of shelter and other homeless services, improvements in psychological health and substance use, and other domains of wellbeing for those who opt into the evaluation.

Officials are confident the investment will be helpful in ending homelessness.

“We are confident in the resiliency of our residents,” said Britta Fisher, executive director of the Department of Housing Stability in Denver. “Residents can leverage a small amount of basic income to work best in their own unique circumstances and resolve their episode of homelessness.”