Key Terminology G

What is guaranteed income?

Guaranteed income is a regular cash payment, with no strings attached, given to people to ensure a basic level of financial security. Unlike universal basic income, it usually goes to people with low incomes. Dozens of US cities have tested it through pilot programs since 2019.

The idea has deep roots in the Black freedom movement. The Black Panther Party's 1966 Ten-Point Program called for guaranteed employment or a guaranteed income. In his 1967 book Where Do We Go From Here, Martin Luther King Jr. argued that a guaranteed income was the simplest way to end poverty.

The modern wave began in Stockton, California. Starting in February 2019, the Stockton Economic Empowerment Demonstration gave 125 residents $500 a month for 24 months. In the first year, full-time employment among recipients rose from 28 percent to 40 percent, compared with a smaller rise in the control group. Recipients also reported better mental health. In 2020, Stockton Mayor Michael Tubbs founded Mayors for a Guaranteed Income, and pilots spread to cities across the country.

Guaranteed income matters because it trusts people to know what they need. It avoids the paperwork, work requirements and restrictions of many benefit programs, which often keep eligible families from getting help.

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