Austin experimented with giving people $1,000 a month. They spent the no-strings-attached cash mostly on housing, a study found.

A guaranteed basic income plan in one of Texas's largest cities reduced rates of housing insecurity.

Austin was the first city in Texas to launch a tax-payer-funded basic income program when the Austin Guaranteed Income Pilot kicked off in May 2022. The program served 135 low-income families, each receiving up to $1,000 monthly.

Funding for 85 families came from the City of Austin while philanthropic donations funded the other 50.

The program was billed as a means to boost people out of poverty and help them afford housing.

"We know that if we trust people to make the right decisions for themselves and their families, it leads to better outcomes," the city says on its website. "It leads to better jobs, increased savings, food security, housing security."

The program ended in August 2023.

On average, program participants spent more than half of the cash they received on housing.

After the yearlong program, the participants were "substantially more housing secure" than when they enrolled.

The program also helped reduce food insecurity among participants — 17% fewer families were unable to afford a balanced meal,Taniquewa Brewster, a single mother who started receiving payments from the program in September 2022, told KXAN, a local NBC affiliate, that the money she received helped her pay for medical expenses and medicine following an eight-day hospital stay.

Harris County, which includes Houston, earlier this month launched a guaranteed basic income program that gives low-income residents up to $500 a month.

Many other cities around the United States are also experimenting with basic income projects to address rising homelessness.

Ref: Austin experimented with giving people $1,000 a month. They spent the no-strings-attached cash mostly on housing, a study found. (businessinsider)

Photo Credit: Evan Semones