Cambridge RISE aims to: 1) Advocate for financial stability and income equity of households in Cambridge; 2) Determine the impact on residents receiving $500 monthly payments compared to those who did not receive the funds; and 3) Contribute to the national conversation around guaranteed income as a solution to poverty.
The data in this pie chart shows aggregate spending for guaranteed income participants in Los Angeles County, CA. This includes all non-cash expenditures from the participants’ pre-paid debit card that is loaded with guaranteed income payments monthly.
Food and groceries accounted for the largest share of spending, at 35.32%, followed by Retail sales and services (31.27%) and Transport related expenses (10.07%).
The state of California saw significant reduction in poverty as a result of the largest, national pilot in the Child Tax Credit that was implemented as a result of the Covid Pandemic.
This program provided tax credit for eligible taxpayers with qualifying children in the form of cash payouts. The credit amount varied based on factors like the number of qualifying children and the taxpayer’s income. It can lower tax liability or result in a tax refund.
During the course of this pilot, it has been proven to reduce poverty for families with dependent children – in every state.
Basic Information
Children in Households
Gender
Annual Household Income (in $USD)
Demographics of Pilot
The Cambridge Recurring Income for Success & Empowerment (RISE) pilot, launched by Mayor Sumbul Siddiqui and the Cambridge Community Foundation in September 2021, aimed to address economic disparities and racial inequities. The program provided $500 recurring monthly payments for 18 months to 130 randomly selected single-caretaker households living below 80% of the Area Median Income (AMI). The majority of these households were female, African American, single-headed households with two children on average.
Impact on Housing
The RISE pilot significantly reduced housing cost burdens among participants. While 51% of participants experienced housing cost burdens at the start, this figure decreased significantly by the end of the program. In contrast, housing cost burdens increased among the control group.
Impact on Employment
The guaranteed income had a positive influence on employment, as the treatment group consistently reported higher full-time employment rates compared to the control group. By the 12th month, 40% of the treatment group reported full-time employment compared to 28% of the control group.
How was the Money Spent
The guaranteed income was used in several ways, including covering emergency expenses and saving for the future. At the conclusion of RISE, 21% of participants reported more than $500 in savings compared to only 11% of control participants. Additionally, the program made it possible for participants to cover a $400 emergency expense, with the number of people capable of doing so rising by nearly 8 percentage points six months into the program.
Physical or Mental Health Benefits
The impact of the guaranteed income on participants’ physical and mental health was mixed. On one hand, treatment participants reported slightly lower levels of mental distress throughout the study. On the other hand, the program did not significantly impact physical health and levels of perceived stress. These mixed outcomes suggest the need for a more comprehensive and secure safety net to support caregivers.
Featured Story
Katie, a single mother of a 6-year-boy, was born and raised in Cambridge, moved away for a couple of years, and moved back with her family once she had her son. As a victim of domestic violence, Katie received full physical and legal custody of her son. “Being able to provide my son with a happy, healthy, good quality life is the most important thing to me. I don’t want him to miss out on any opportunities that he would want to pursue, especially because I am unable to afford for him to do it.” Before being selected for Cambridge RISE program, Katie’s only source of income was $531 a month from the Department of Transitional Assistance (DTA) cash assistance program. “I would pay for everything including rent, phone, diapers, and gas just about every month. I would be lucky to have $20/week left over for anything else.” Katie shares that most months she could not afford to buy things like coffee or go to the zoo with her son, even with reduced rate tickets. Things were out of her budget. “My son and I even shared a slice of pizza for dinner one night.” When Katie was notified, she was selected for Cambridge RISE she expressed that “this was the opportunity of a lifetime and I felt like I had hit the lottery!” Since being in the program, Katie has been less stressed about her monthly bills and enjoys spending quality time with her son. “I now don’t stress about going to buy my son a new jacket when he has outgrown his last one, or a new pair of shoes when he needs them. I can also take him out on adventures, spend the day at the museum or drive to the beach for a few hours.” Katie adds, “As a single mother, there is not much that I do alone, but I now have the opportunity to take my son to dinner and enjoy a nice night out with him about once a month.”
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