Guaranteed income pilot project aims to boost low-income single mothers in Maine

Guaranteed income is an idea based on the belief that providing unrestricted cash payments to low-income residents is the best way to help them lift themselves out of poverty. It's a model that's been championed by seemingly disparate figures over the decades, including Martin Luther King, Jr., Richard Nixon, and, more recently, tech entrepreneurs such as Andrew Yang.

Now, one Maine nonprofit has wrapped up a pilot of what it's calling the state's first guaranteed income project.

At her apartment in Lewiston earlier this month, Coumba Holland proudly pointed out some recent purchases — a rice cooker, a bunkbed for her two kids, age five and seven, and a kitchen table.

An upgrade, she said, speaking in her native French, from having to eat meals on the floor.

Holland said she was also able to furnish her apartment, and purchase winter clothing for her kids, thanks to monthly cash assistance she received through the Quality Housing Coalition's guaranteed income program, called Project Home Trust.

Holland said the program also allowed her to afford a babysitter while she completed a bank teller training program at Lewiston Adult Education.

"It's because of this program," she said, "that I was able to complete the course."

Holland, originally from Senegal, was one of 20 formerly homeless single mothers selected for the yearlong pilot project. Funded by private donations, the program offered $1,000 a month in direct payments, with no restrictions on how to spend the money.

The core idea, said program coordinator Peace Mutesi, is that people who are struggling know best how to meet their own needs.

"The flexibility that comes with it, and the trust that people know what's best for them, is why we really want to take that approach," Mutesi said.

Participants also received classes on money management, parenting, and navigating the housing market.

By the end of the program, the Coalition reports that nearly half of the mothers said they could handle a $400 emergency expense, as compared to almost none at the outset.

The data also point to a positive impact on mental health, with more participants reporting optimism about their financial future.

"We looked at financial stability, we looked at mental and physical health, and future aspirations," Mutesi said. "All of it improved throughout the year."

The Coalition may be breaking new ground in Maine, but the guaranteed income model actually has a long history in the U.S.

Martin Luther King Jr. championed the idea as a simple and effective tool to abolish poverty. Around the same time, President Richard Nixon proposed a negative income tax, effectively a guaranteed income for eligible families.

But the concept reemerged with new urgency during the pandemic, with a surge in unemployment.

"People lost their income en masse and realized that the loss of income is not a moral deficiency," said Dr. Allison Thompson, executive director of the Center for Guaranteed Income Research at the University of Pennsylvania.

In addition to the emergence of stimulus checks, she said many local jurisdictions used federal COVID relief funding to test their own guaranteed income pilots.

There are more than 60 such experiments taking place across the country, and Thompson said preliminary data show promising results across multiple metrics.

"People are better able to weather economic shock and handle a $400 emergency expense. In general, better able to save and have improved food security," she said.

It's not so clear what effect the guaranteed income model has had on easing the housing burden, which depends in large part on the local market and cost of living.

In Lewiston, Coumba Holland said the program has helped her reach a more stable place.

But now that it's over, she's still trying to juggle adult education classes, her kids' school schedule, and her own career aspirations.

"To tell you the truth, I'm a little bit stressed," she said. "Because it's just me with two kids."

Holland said her goal is to complete her current adult ed class, then apply for jobs that line up with her kids' school calendar.

Meanwhile, the Quality Housing Coalition has already welcomed a second guaranteed income cohort, and is pursuing the creation of similar programs around the state.