While $500 a month may not have been enough to bring participants out of poverty, an assessment of the city’s guaranteed income pilot program found that it had a substantial impact on participants.
The program, labelled Alexandria’s Recurring Income for Success and Equity (ARISE) in a bit of a backronym, was funded in 2021 for $3 million out of the American Rescue Plan Act. The program gave 170 low-income Alexandria residents $500 per month for 24 months to assess the impact it would have on their lives. In June, the program recieved another $550,000 from the City Council to extend the program to June 2025.
A release from the City of Alexandria said AshLee Smith Playfair, lead evaluator of the program from consultant Abt Global, reported in a presentation to Alexandria’s City Council:
- Improved Mental Wellbeing: Participants in the ARISE pilot reported significantly more peaceful and stable home environments than those in the control group. Additionally, they expressed feeling more hopeful about the future, and reduction of financial stress, which improved their mental wellbeing. Participants reported feeling more patient with their children and were able to spend more time with them than control group members.
- Increased Financial Stability: The pilot demonstrated signs of improved financial stability for participants. Recipients noted greater control over their finances, reduced financial stress, and a greater ability to manage unexpected expenses, all contributing to their overall sense of security. Among ARISE participants, 1% reported living off their savings, compared to 6% of control group members.
- Empowerment: A notable insight from the evaluation was the impact of guaranteed income on participants’ ability to balance their personal responsibilities. ARISE participants reported being able to work fewer hours, which allowed them to focus on family, education, and other important life activities. They also found time to focus on caregiving, entrepreneurship, and education.
A brief about the program is available online and includes testimony from participants in the program. The brief also noted that the median household income among participants was less than $22,000 annually in a city where the median household income is $93,400.
“I am not worried about not having gas to go somewhere if I need to,” Heidi, a participant in the program, said in the brief. “Maybe an emergency, something like that. I have the money now and in case something comes up.”
“I’m in a better head space now that I know that I have extra income… it took a big load off my back,” Program participant Latoya said. “I can actually breathe and I can actually be happy now.”
At a City Council meeting earlier this month, City Council members said they were happy with the results, while also noting that with no alternative funding source the program was unlikely to move out of the pilot stage.
“This is not something we set up as an idea that we would just scale it and grow it multiple times to add thousands of people to this, it’s not something we’re financially in the immediate position to do,” said Mayor Justin Wilson. “However, we wanted to see what it could teach us about the very many programs we provide to assist people experiencing poverty in our community.”
