Initial Impacts of Guaranteed Income (GI) on Wellbeing of Pregnant Participants and Young People Aging out of Foster Care

Background and Purpose: In 2023, the California Department of Social Services (CDSS) began administering a guaranteed income (GI) pilot program in seven sites across the state for two groups experiencing vulnerable life transitions: low-income pregnant people and youth aging out of foster care (former foster youth). The CDSS GI pilots provide unrestricted monthly cash payments of $600-1,200 for 12 or 18 months.

Unconditional cash payment programs are being delivered worldwide under the theory that financial strain is a primary barrier to well-being and cash is a straightforward, administratively simple solution. One approach to cash payments, GI, is intended to support low-income populations by providing a time-limited benefit designed to stabilize financial precarity. The CDSS program is unique because it offers both GI and waivers that exclude GI from counting as income for some means-tested benefits, something that has not been part of similar domestic GI programs. We examine whether GI improved outcomes including housing, financial wellbeing, mental health, and stress among others within the first three months of receipt.

Methods: We employed a randomized controlled trial design enrolling 2,285 pregnant participants and 776 former foster youth. Data sources include longitudinal surveys using validated scales administered at baseline and three months post-randomization (with future waves planned for nine months post-randomization, program exit, and six months post-program exit). Differences between groups were tested using unadjusted chi-squared and t-tests.

Results: Treatment and control groups were equivalent at baseline, with response rates of 77% and 66% for pregnant participants and former foster youth, respectively. At three months, we observe initial protective impacts of GI, with response rates of 68% and 62%. For pregnant participants, the treatment group was less likely to have experienced homelessness/couch surfing (13% vs. 27% in the past year, p<0.001), less likely to report financial stress (41% vs. 62% in the past three months, p<0.001), experienced fewer days of poor mental health in the past month (7.1 vs. 9, p<0.001), and had lower perceived stress (p<0.001) compared to the control group. For former foster youth, the treatment group was also less likely to have experienced homelessness/couch surfing (28% vs. 46%, p<0.001), less likely to report financial stress (61% vs. 79%, p<0.001), experienced fewer days of poor mental health in the past month (8.6 vs. 11.5, p<0.05), and had lower perceived stress (p<0.001) compared to the control group.

Conclusions and Implications: Pregnant people and former foster youth both face life transitions that put them at risk for homelessness and increased stress. This study suggests that GI can help them thrive. Future survey waves will determine if results sustain over time.