Denver has embarked on an unprecedented social experiment: the Denver Basic Income Project (DBIP), which makes unconditional cash grants to people and families who are homeless. Targeted solely to the homeless, this is one of the largest guaranteed income initiatives of its type in the United States. Since its launch, the program has disbursed more than $10 million to more than 800 members, providing a distinctive perspective to assess how direct cash support can impact housing stability and well-being. Preliminary results indicate profound changes in participants’ housing status, but the findings also show the nuances of quantifying long-term effects.
The city’s homelessness crisis is acute, with Denver ranking 19th nationally in population size but 5th in unhoused residents, exceeding 10,000 people. Approximately 30 percent of those without housing are unsheltered, facing heightened risks during cold winter nights when temperatures regularly fall below freezing. Vulnerable populations, including people of color particularly Black, Native Hawaiian, and Pacific Islander individuals and those with disabilities, are disproportionately affected, highlighting the urgent need for targeted interventions.
It was in this difficult context that DBIP was born. The project’s founder, Mark Donovan, drew on the models of other successful guaranteed income initiatives, including Stockton’s Economic Empowerment Demonstration and Vancouver’s New Leaf Project. Donovan has made it clear that “Direct, unconditional cash assistance is the most effective form of social support for struggling individuals and families,” given the established success of such programs. Following a low-key launch in 2021 with community momentum, the project won the support of then-Mayor Michael Hancock, and in September 2022, it received a $2 million investment from the American Rescue Plan Act, which cemented the city’s endorsement of this forward-thinking method.
A Man Sitting on the Street in Denim Jeans with His Hands on His Head
The larger pilot launched in November 2022 as a randomized controlled trial, enrolling 820 homeless adults. Eligibility necessitated that participants be aged at least 18 years, not having extreme untreated mental illness or substance use issues, and linked with one of 19 homeless service providers in the area. Participants were randomly placed in three groups: 260 were paid $1,000 per month for a year; another 260 were paid a lump payment of $6,500 plus $500 per month; and 300 in a control received $50 per month. All participants received cell phones with data to facilitate research, conducted by the University of Denver’s Center on Housing and Homelessness with partners like the Colorado Coalition for the Homeless and the City of Denver. Notably, 92 percent of participants opted to engage with the research.
At six months, early quantitative findings were promising. Participants had fewer nights spent on the streets, fewer emergency room visits, and more people working. For example, 35 percent of people getting cash payments were housed in their own homes at six months compared with only 8 percent when they began the program. These results first indicated that direct cash support might have a big influence on housing stability.
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How to help those without a home – The Garden Outreach Project
The program also assessed population impacts, estimating decreased utilization of emergency services, shelters, and jails. Reduced utilization saved the city an estimated $589,214 compared to a $9.4 million program budget. Participants reported consistently that the funds assisted with current needs such as transportation, food, hygiene items, and essential bills, ensuring financial stability and reduced dependence on emergency aid.
Employment success differed by payment cohort. Those receiving $1,000 per month or the lump sum reported increased full-time employment rates, while the control group declined slightly. Psychological assessments revealed slightly more stress overall but increased leisure time with friends and family reported by those receiving $1,000 or in the control group. Parents, specifically, reported they could more easily take care of their children and grandchildren, pointing to a general impact on family well-being.
- Higher cash payments alone did not guarantee better outcomes.
- Temporary housing vouchers and supportive services played a role during COVID-19.
- Program effectiveness depends on multiple factors beyond cash assistance.
- Integrating financial aid with systemic supports is crucial for addressing homelessness.
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Individual stories illuminate the program’s effects. Jarun Laws, unhoused for nearly a decade, temporarily secured housing and employment, yet returned to his car after payments ended. Moriah Rodriguez applied the money to fix her neglected truck, obtain permanent housing, and meet her children’s needs. Dia Broncucia and Justin Searls moved out of shelters into full-fledged apartments, crediting stability to the up-front lump sum and continued monthly payments. These individual stories illustrate both the promise and temporary limitations of short-term interventions.
The project has been lengthened by six months on the strength of $5 million in additional funding. The higher-payment groups continue to receive $1,000 per month, and payments for the control group have risen to $100 per month. Even after raising $14 million to this point, sustaining steady support is a challenge, with previous payment gaps lasting as long as four months. In the long term, DBIP hopes for a 3–5 year study to examine whether sustained income can truly improve housing and well-being.
- Guaranteed income gives unconditional cash assistance to enhance economic stability.
- Consistency of payments is key when assessing long-term effects on housing and well-being.
- Control groups enable measurement of the effectiveness of various levels of payments.
- Long-term research determines if continued income generates enduring social gains.
Central to DBIP’s approach is equity
Racial equity is central to DBIP, and participant demographics mirror the disproportionate effect of homelessness on Black, Native Hawaiian, and Pacific Islander individuals. Donovan insisted on intentional recruitment to ensure representation of city demographics, with an emphasis on women, trans and gender non-conforming individuals, and sheltered families. Collaboration with providers who served marginalized populations ensured a diverse group: 67 percent were people of color, almost half had disabilities, and the gender balance was achieved.
Equity is extended to research participation, storytelling, and compensation. Participants are given phones, assisted in sharing their experiences, and their feedback is regularly integrated into program operations. This empowers participants while making sure the project reflects and serves the communities worst hit by homelessness.
- Equity comprises research participation, storytelling, and just compensation.
- Participants are given phones and assistance to share their experiences.
- Regular feedback from participants is integrated into program operations.
- The strategy empowers stakeholders and guarantees the program benefits impacted communities.
Final Thought
As basic income pilots grow across the country, Denver’s program provides lessons for future initiatives. Donovan sees scaling DBIP to benefit 100,000 individuals in five years with $1.2 billion, serving as a model for replication. Though the first-year report indicates greater cash payments did not always outperform the control, all groups experienced significant housing improvements. Individual narratives and program outcomes underscore the potential of trust, stability, and focused support to address homelessness. Denver’s experience defies conventional wisdom, presenting a data-informed yet human-focused strategy for addressing poverty and housing instability.
