Baltimore guaranteed income program opens the door to new opportunities and a chance for a better life for participants
Author: Nicole Rothstein
What would happen if we trusted young parents living in poverty with money that they could spend however they saw fit for their families?
This question inspired the Baltimore Mayor’s Office of Children and Family Success to launch a guaranteed income (GI) pilot project – the Baltimore Young Families Success Fund (BYFSF). The pilot project, in partnership with BYFSF, was administered by The CASH Campaign of Maryland (CASH), with technical assistance provided by Mayors for a Guaranteed Income.
The results of the Baltimore GI program have been remarkable. This is the second in a series of inspirational stories highlighting several of the program participants.
When Nina Smith heard of the opportunity to apply for the Baltimore GI program, she wondered if it was too good to be true. Could she really receive $1,000 a month for 24 months without any restrictions on how the money must be spent? She was hesitant, but her mom encouraged her to apply.
In June of 2022, Nina learned she was one of the 200 individuals – out of 4,000 applicants – selected to participate in the Baltimore GI program.
“I was ecstatic,” Nina recalls. “I felt so very blessed.”
Nina says she is grateful to Baltimore Mayor Brandon M. Scott, who announced in 2020 that he had signed on to the Mayors for a Guaranteed Income coalition – a task force of approximately 170 mayors advocating for a federal GI to address deep-rooted economic insecurity.
“Mayor Scott is a great mayor,” she says. “His office is always coming up with different initiatives for the community.”
“The beauty of this is that it’s your money.”
Baltimore’s GI program was created to support individuals ages 18-24 raising children in the City of Baltimore and living at or below 300% of the federal poverty level. The project was intended to help with recovery from the economic fallout of the pandemic for low-income families who were heavily impacted by such things as closing daycares, higher unemployment rates, and increases in food prices and other necessities.
The project – administered by CASH – gave 200 young families a guaranteed income of $1,000 monthly for 24 months. Payments were issued starting in August 2022, with the last payment given to participants in July 2024.
Tonaeya Moore, Director of Policy for CASH, served on the steering committee for Baltimore’s GI program and provided hands-on planning and execution throughout the duration of the program. She notes that a defining feature of the program is that participants could use the money however they needed or wanted to.
“The program had no strings attached because people know what’s best for their families,” Tonaeya says. “They don’t need limitations on how to spend their money. Unlike other programs, GI respects people’s ability to make financial decisions based on their needs.”
Although she was initially skeptical, Nina says that providing funds without any restrictions gave her the confidence she needed to allocate the money how she saw fit.
“I didn’t have to feel bad for using it for anything,” she says. “The beauty of this is that it’s your money.”
Reliable income creates certainty and opportunities
Nina, a Relationship Banker with Bank of America, is the oldest of seven siblings and the single mother of a three-year-old daughter. Before the Baltimore GI program, Nina and her daughter were living with her mom – not quite earning enough to afford a place of their own.
The $1,000-a-month boost was what Nina needed to take the next step toward independence.
“This was an opportunity for me to move out of my mom’s house and get a little more stabilized,” Nina explains. “It gave me the cushion I needed.”
Nina and her daughter moved out on their own during the program – and even housed one of Nina’s siblings for a time. Currently, Nina has started the home-buying process and is excited about the opportunities that lie ahead of her.
“The program gave me the confidence to do more adult things,” she says. “It feels good to not be so dependent on my mom and on her guidance.”
Nina believes one of the keys to success for the Baltimore GI program was the consistency and reliability of receiving the funds.
“If something was to happen, I knew the money was coming,” she explains. “It gave me the support to not have to freak out about money all the time. It allowed me to do some planning because I knew what was coming and when. To be intentional with how and when to pay the bills. It gave me some breathing room.”
Overall, Nina’s use of the funds and her feedback on the program are consistent with data received from other program participants. An evaluation conducted six months and then again one year into the program showed that participation increased income, helped individuals transition into more independent living situations, and improved mental and emotional health.
For Nina, the added reliable income, the trust given to her to spend the money however she determined best, and the planning skills she learned through the program have equipped her with the confidence to do more with her life. She says this experience has opened the door to more opportunities with her daughter, such as going to the movies and planning vacations.
“I love just taking her out in the world – seeing the earnestness in her face and knowing it makes her so happy,” she says.
An eager advocate for future GI programs
When asked what advice she would give someone in the initial stages as a participant in a GI program, Nina says she would tell them to be wise with the added income.
“Don’t overstep yourself because you never know what you will need the funds for,” she explains. “Include it in your income but don’t make it the basis for your life. Use it as a stepping stone. Take the opportunity because a lot of people didn’t get it. Use it to better your life however that looks.”
The CASH team – believing that money alone cannot fix everything – continues to offer additional outreach services to program participants even now that the funding has ended. Nina says she plans to take advantage of their free tax preparation services, home buying resources, and other opportunities.
She is also enthusiastic about helping CASH advocate for future GI programs, as she believes the vital support can be a pivotal turning point in the lives of so many people.
“This program was honestly a godsend for me personally and I cannot imagine the impact it could have on other people,” she says. “I hope they are able to keep up this great work.”
Visit the CASH Campaign of Maryland blog to read additional stories about Baltimore’s Guaranteed Income Pilot Program.