Baltimore Young Families Success Fund Pilot Demonstrates Significant Gains in Financial Stability and Well-being

BALTIMORE, MD – A recent independent report on the Baltimore Young Families Success Fund (BYFSF) pilot program has revealed substantial positive impacts on the financial stability, food security, and overall well-being of young parents who received unconditional cash payments. The findings, released by Mayors for a Guaranteed Income, indicate that participants experienced tangible benefits from the $1,000 monthly income, with many of these improvements persisting even after the program concluded.

The BYFSF program provided 200 young parents with a consistent, unconditional cash payment of $1,000 per month for a duration of 24 months, from August 2022 to July 2024. Eligibility for the program required participants to be residents of Baltimore between the ages of 18 and 24, holding biological, adoptive, or guardianship responsibilities with full or partial caretaking duties. Additionally, their household income had to be at or below 300% of the federal poverty level. Out of over 4,000 applicants, 130 were chosen for the guaranteed income group through a randomized controlled trial, with a comparable number selected for a control group to facilitate research. The initiative was financed with $4.8 million from the American Rescue Plan Act funds.

The research highlighted significant improvements in financial stability among BYFSF participants. Many were able to reduce debt and increase their savings, with these positive financial shifts continuing after the monthly payments ceased. In terms of employment, participants in the program were more likely to engage in paid or unpaid work compared to those in the control group, and a larger percentage reported income from employment. The increased access to childcare, potentially facilitated by the guaranteed income, appeared to reduce work-related challenges. At the 24-month mark, BYFSF participants reported missing an average of nine fewer hours of work per month than their control group counterparts. The program also seems to have fostered educational and professional development, with participants more than twice as likely to have applied for or planned to apply for educational or professional training opportunities.

Food security was another area that saw considerable improvement. Approximately half of the interviewed participants utilized the guaranteed income to purchase food, and the rate of food insecurity was significantly lower among the BYFSF group. At 18 months, participants were 16 percentage points less likely to experience food insecurity, a benefit that extended beyond the program’s funding period. The report also indicated that the BYFSF helped roughly half of the interviewed participants cover rent expenses, with some using the funds for security deposits or moving costs. The percentage of participants living with friends or relatives decreased from 37% at the program’s start to 23% by the 24-month mark, and further to 19% after the payments ended, suggesting increased housing stability. Furthermore, participants reported less household chaos at 18 and 24 months compared to the control group, indicating that the guaranteed income may have contributed to more organized and peaceful home environments.

Parenting and mental health also benefited from the program. Nearly all BYFSF participants stated that the guaranteed income enabled them to meet their children’s basic needs or provide more enriching activities. Mental health outcomes showed a reduction in stress levels among participants at 24 months, with this positive impact potentially lasting, as indicated by significantly lower scores on the Kessler scale at 30 months. Participants were also 15 percentage points more likely to feel they held more significance in the lives of those around them. These findings suggest that direct cash assistance can be a powerful tool for enhancing the lives of young families.

Article by Mel Anara, based upon information from the City of Baltimore

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