Those who Received Direct Cash Assistance in Program More Likely to Work, Study Finds

Louisville, Ky. (Oct. 21, 2024) – A pilot program started in 2022 in Louisville exploring the benefits of direct cash assistance to young people in financial need has led to several key findings.

For 12 months starting in the spring of 2022, 151 young people (ages 18 to 24) from the Smoketown, Russell, and California neighborhoods received $500 a month through a program called the YALift! Guaranteed Income Pilot, which was a partnership between Metro United Way, Mayors for a Guaranteed Income (MGI),  Russell: A Place of Promise and Louisville Metro Government, with support from community, YouthBuild, MOLO Village, and 2NOT1.

Each individual received a total of $6,000 during the one-year program. All of that money came from philanthropic dollars from Metro United Way and MGI.

Of the 151 recipients, 79% reported being food insecure, 44% carried utility debt, and 35% received public benefits prior to the program. Their average household income was $15,648 a year.

In addition to the 151 young people who received money, YALift! included a control group of 180 randomly selected individuals who did not receive the cash benefit but who participated in periodic surveys to help evaluate the impact of the program.

The study found:

• Recipients were 32% more likely to report working full time
• 50% used income to pursue education or training
• Recipients were 70% less likely to have been evicted
• Recipients were 3 times more likely to be able to afford a $400 emergency expense

Results show that direct cash assistance can be a valuable tool to reduce poverty in our community as it enables households to address their individual and varying needs whether that’s rent, child care, expenses for education, or transportation.

Metro United Way is dedicated to finding innovative solutions to long-term problems in our region to help create thriving kids, strong households, and an equitable community. Based on these findings, the organization plans to integrate direct cash assistance into some of its ongoing programs as a strategy to combat poverty.

“As we look for solutions to the most pressing issues facing our community and neighbors, YALift! showed the power that direct cash assistance can make for individuals and families in supporting their goals to lead thriving, fulfilling lives,” said Adria Johnson, President and CEO of Metro United Way. “We will continue to convene our community to explore and scale innovative solutions that build pathways from poverty to prosperity.”

Research by MGI in other cities across the country has also shown that direct cash assistance programs demonstrate many positive benefits including reduced income volatility, increased overall wellbeing, and increased participation in the workforce – which benefits our entire community.

“When we remove the stigma of poverty by providing unrestricted direct funding, and recognize the economic inequities faced by so many in this country by providing a regular, guaranteed cash infusion to supplement individuals and families, it’s no surprise that we see the kinds of positive outcomes documented through YALift!,” said Theresa Zawacki, Co-Lead for Russell: A Place of Promise. “Giving young people an opportunity to focus their attention on growing a solid financial foundation through higher-paid work, education, savings and debt reduction by providing regular direct cash assistance can reduce stress, and build confidence, changing the course of their lives for the better. We are proud that young people in Russell, California, and Smoketown were able to be part of demonstrating the power and lasting impacts of direct cash assistance programs like Guaranteed Income.”

To learn more, access the full report HERE.

ABOUT METRO UNITED WAY

For more than 100 years, Metro United Way has been improving lives and our community, which includes Jefferson, Bullitt, Oldham, and Shelby counties in Kentucky and Clark, Floyd, and Harrison counties in Indiana. We are uniquely positioned to harness the power of donors, volunteers, thought leaders, experts, other nonprofits, and government at all levels to ensure positive, sustainable change for every person in our seven-county region. Now more than ever, we are focused on three priorities: thriving kids, strong households, and an equitable community.