What is universal basic income and who can apply for it in the US?

Universal basic income (UBI) is an economic concept that holds the potential to provide a safety net for all members of a community or society. It ensures that everyone has an amount of money they could reasonably live on, with any additional income from labor as a supplement.

Universal means universal, meaning a true UBI would be distributed to all members of a certain group or geography, regardless of their income level. Basic refers to the value of the payment, which should be enough to survive. A UBI would have direct and very intense impacts on the labor market of the economy where it is being deployed. Assuming that the private sector does not have the power to erase the purchasing power of the payments by increasing prices, the sense of economic security offered by the payments could encourage many to quit their jobs or work fewer hours, thus giving them more leisure time to relax or explore their passions and interests. Low-wage workers would be better positioned to demand better conditions now that they can rely on their UBI to cover their basic needs. A UBI of this nature could be liberating and transformational and, as such, requires intensive economic planning.

However, providing all members of society with a payment, even those who are very well off, is controversial. UBI proponents reject these arguments and point to other examples of universal services that the rich can access that do not degrade the benefits for others. Consider public libraries or public education. Does the fact that the wealthy can access these services limit their benefits for low-income families?

What is the difference between a UBI and a guaranteed income program?

UBI pilots are taking place around the world, including some in the United States. For instance, three counties in central Iowa, Polk, Dallas, and Warren, run a pilot that sorts the participants into two groups. “One group is receiving the $500 monthly income payments, and the other is not,” reads the Basic Income Pilots website description. Researchers will interview the participants and collect information on their “life experiences and community needs.” A UBI purist might argue that if scaled up, this program would represent a guaranteed income program since it lacks the universal and basic elements of UBI.

UBI’s universal aspect distinguishes it from a guaranteed income program (GIP). A GIP provides payments to those in need rather than to all members of a geographical unit, which is more similar to a government assistance program. Proponents of GIP argue that, unlike UBI, these programs are targeted at those who need the funds. When funds are limited, the program will have a more significant impact if those in need are given larger payments instead of providing all residents of a town or county with a smaller check. A GIP is easier to justify, and many of the pilots highlighted on Basic Income Pilots are GIPs that could be rolled out to target that same population at a larger scale if shown to be successful.

Researchers have found that UBI can be beneficial to individuals, specifically parents, who work and earn an income just high enough that they are disqualified from receiving welfare benefits. These additional payments are what they need to stabilize their financial situation, and even if distributed for a short period, they can strengthen their financial well-being to the extent that they are no longer in need of assistance. However, more pilots and programs must be tested to bolster this emerging evidence. One woman in Chicago who formed part of a pilot there said that the payments were able to get her and her children out of a women’s shelter and into an apartment.

In the Coachella Valley in Southern California, a pilot program is being conducted with 140 immigrant families who are critical to the labor force but ineligible for federal benefits. The Immigrant Families Recovery Program has been providing low-income immigrant families with young children $400 a month since 2022, and the pilot is set to end this year. Researchers will then analyze the results to explain the program’s impacts on the families, particularly the children.

Where do UBI programs exist in the United States?

Alaska is the only US state that has a program similar to UBI. Thanks to the state’s extensive oil reserves, Alaskans receive a cash payment expected to rise to $1,338 this year. Though this is far from the income needed to survive in Alaska, it is a heavy payment that is relatively simple to receive from the state government. However, more pilots and programs are being tested all over the country, and by visiting the Basic Income pilot website, you may be able to find one that you can sign up for in your area.