Miracle Friends and Miracle Money in California: A Mixed-Methods Experiment of Social Support and Guaranteed Income for People Experiencing Homelessness

Background and Purpose: We conducted a randomized controlled trial of an intervention initially designed to address social isolation and loneliness among people experiencing homelessness but was subsequently paired with an economic poverty-reduction intervention. The social support intervention, known as “Miracle Friends,” pairs an unhoused person with a volunteer “phone buddy.” The poverty reduction intervention, known as “Miracle Money,” provides guaranteed basic income of $750 per month for 1 year to Miracle Friends participants. The study will examine whether either intervention reduce social isolation or homelessness compared to a waitlist control group using a mixed methods approach.

Methods: Unhoused individuals who expressed interest in the phone buddy program were randomized to either receive the intervention or be placed on a waitlist. Among those randomized to receive the intervention, randomization also determined whether they would be eligible for basic income. All study participants, regardless of assignment, were surveyed every 3 months for 15 months. We compared 69 participants who received at least 6 monthly payments to 86 participants on the waitlist. 20 participants who received basic income were recruited to conduct 2 semi-strucured qualitative interviews.

Results: Unsheltered homelessness was reduced from 30% at baseline to 12% at 6 month follow-up for those who received basic income (p<.05) as compared to 28% at baseline to 23% at 6 month follow-up for those on the waitlist. Those who received basic income also reported having fewer unmet basic needs as compared to those on the waitlist. Qualitative themes from baseline interviews included: 1) "Reckoning with money"; 2) "Pursuit of housing"; And 3) "Helping others."

Conclusion and Implications: Preliminary results suggest that basic income may be an efficient way to reduce unsheltered homelessness. Money was used primarily for basic needs rather than "temptation good" like drugs that is a common misperception. While limited income may not be sufficient to access formal housing markets, basic income may help people exit homelessness through informal housing arrangements. Social support remains important to help people navigate accessing resources.