Denver Gave Homeless People $1,000 Per Month — A Year Later, Nearly 50% Of Them Secured Housing

A yearlong Denver program testing unconditional cash payments for people experiencing homelessness showed that twice as many participants secured stable housing, according to a report released one year after the experiment began.

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The Denver Basic Income Project provided financial assistance to over 800 people. Participants were divided into three groups:

• Group A received $1,000 per month for 12 months.
• Group B received a one-time payment of $6,500 followed by $500 monthly payments for 11 months.
• Group C, the control group, received $50 per month.

The one-year report of the Denver project, released on June 18, revealed promising outcomes. After receiving monthly payments for 10 months, 45% of participants secured stable housing. The program also led to fewer emergency room visits, hospital stays, nights spent in shelters and jail incarcerations. The city estimates cost savings of $589,214 due to reduced use of public services.

Unconditional cash transfers, also known as basic income, are gaining traction as a poverty-reduction strategy for U.S. cities. Unlike traditional social services such as SNAP or Medicaid, basic income empowers recipients to prioritize their most pressing needs.

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"What is fundamentally different about our approach is how we start from a place of trust," said project Founder and Executive Director Mark Donovan at a press conference.

The Denver report highlights two main areas where the program benefited participants: covering essential needs and fostering financial stability.

The report found that recipients primarily used the money for immediate expenses such as transportation, food, hygiene products, and clothing. Many participants prioritized using the funds for recurring bills such as rent, health care and debt payments.

Participants across all payment groups reported feeling more financially secure and relying less on emergency assistance programs. Nick Pacheco, the participant engagement coordinator, emphasized at a press conference that basic income "puts low-income families on an equal playing field." He explained how the cash assistance empowers participants to pursue training and resources needed for career development.

Participants who received the one-time payment or $1,000 per month were more likely to find jobs compared to before participating in the program.

"It's freedom," Pacheco said. "It's freedom from poverty and not being able to reach your goals."

Funding for the $9.4 million Denver Basic Income Project came from both public and private sources. The Colorado Trust contributed $1.5 million, while the city of Denver allocated $2 million from federal pandemic relief funds. The University of Denver's Center for Housing and Homelessness Research played a key role in collecting participant experiences and analyzing the project's outcomes.

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