In July, we saw the completion of the Baltimore Young Families Success Fund, a guaranteed income pilot program led by Mayor Brandon Scott that provided 200 young low-income parents with an unconditional cash payment of $1,000 per month over 24 months.

Our organization, the CASH Campaign of Maryland (CASH), was selected to be the nonprofit administrator for the program. CASH promotes economic advancement for low- to moderate-income individuals and families in Baltimore and across Maryland and has extensive experience with direct cash programs through our work with tax credits such as the Earned Income Tax Credit and the Child Tax Credit and our research on Baby Bonds at the federal, state and local level.

After two years of administrating this program, we’re more confident than ever in the importance of guaranteed-income programs, in Baltimore and elsewhere, to help close the gap created by low wages and give people financial stability.

These programs are so critical because they provide resilience to participants, ensuring everyone has funds to deal with an emergency expense or to navigate out of a difficult situation; they promote self-determination, establishing that people can decide for themselves what they need to improve their situation; and they preserve dignity, empowering everyone so no one is forced to prove they are deserving of support.

Throughout the two-year program, participants reported increased financial stability, improved mental health, and a boost in employment rates as they used the financial cushion to pursue better job opportunities or invest in their skills. CASH had access to 70 participants in the program who were part of the “storytelling cohort.” In interviews, participants shared that they were able to save and access child care and better transportation. They told us about how these payments improved their mental health, gave them relief from financial stress, and how they were finally able to start saving money while taking care of their children.

The positive impacts of this program are also shown through data collected over the last two years.

Abt Associates, a research and evaluation company specializing in public programs, is conducting a randomized controlled trial evaluation of 130 participants in Baltimore’s program. Data will be analyzed including recipients’ mental health, income volatility, spending, consumption, employment, education, family dynamics and parenting, stress and coping, hope and mattering, household food security and other COVID-19 variables.

Based on data from the program’s first year, Abt’s interim report shows that families participating in the Baltimore Young Families Success Fund showed significant improvements compared with those in the control group after one year of the pilot. Notable improvements were observed in areas such as income, education, housing and employment.

During the program’s offboarding process, which included benefits screening and financial education classes, participants reported feeling more empowered. The program offered the financial cushion necessary for their economic advancement. CASH continues to connect participants with the essential support needed for their families.

CASH will continue to advocate for guaranteed income and similar policies. We are grateful for our collaboration with organizations such as Mayors for a Guaranteed Income and Economic Security Project, where we can unite to discuss insights, exchange ideas and strategize on ways to ensure ongoing economic security for families.

Through this program, we have observed the tangible impact that combining payments with support services and fostering a sense of community has had on the lives of our participants. Although the program ended on July 15, we are committed to maintaining and nurturing the relationships we’ve established and will continue to support families the best way we can. And we hold that guaranteed income programs offer enormous potential to deliver a future in which so many more families in our community can experience greater well-being and financial stability.

Tonaeya Moore (GI@cashmd.org) is director of policy at CASH Campaign of Maryland.