Guaranteed Income Works: Data from BALTIMORE, MD

 Baltimore Young Families Success Fund

The Baltimore Young Families Success Fund (BYFSF) is a guaranteed income pilot project launched by Mayor Brandon M. Scott, which provides 200 young parents with an unconditional cash payment of $1,000 per month over the course of 24 months. Qualified recipients must be Baltimore residents between 18-24 years old, be either the biological or adoptive parents, or guardians, must have full or partial care-taking responsibilities and have income at or below 300% of the federal poverty level based on their household size. The first cash disbursement that went to families was in August 2022 and the final cash disbursement will be in July 2024.


Analyzing data from the first year of the program, the interim report finds that BYFSF families are doing better than control group families one year into the pilot. Researchers found differences in income, education, housing, and employment.



Key Takeaways

  • Incomes increased for BYFSF participants. At the beginning of the study, both BYFSF participants and control group members had similar household incomes. By the 6-month follow-up survey, BYFSF participants’ household incomes were nearly 90 percent higher than control group members’ household incomes ($26,926 vs. $14,211). After 12 months, BYFSF participants’ household incomes remained higher than control group households’ incomes.

  • Receiving guaranteed income helped some BYFSF families move into more independent living situations. At time of application, 39 percent of BYFSF participants lived with friends or family and 52 percent rented. At 6 months, the percentage of BYFSF participants living with friends or family had fallen to 25 percent and the percentage renting had increased to 67 percent, a change that was statistically different from the control group. This difference persisted through the 12-month mark.

    • Some BYFSF participants might have used guaranteed income to invest in education. At the beginning of the study, the percentage of BYFSF participants and control group members who reported applying to college or a trade school was about the same, 16 percent. Six months into the program, the percentage increased to 24 percent of BYFSF participants while holding steady at 15 percent of control group members. At 12 months, 27 percent of participants reported applying to college or a trade school, while only 13 percent of the control group did. 

    • Receiving guaranteed income may have increased BYFSF participants’ labor force participation.Six months after the first payments were distributed, the labor force participation of BYFSF participants increased, while it remained stable for control group members. By 12 months, labor force participation further increased for the BYFSF participants, and the control group continued to remain stable, resulting in a 9-percentage point difference between the groups.

The BYFSF aimed to combat the economic fallout from COVID-19 by providing payments to young parents who have been hit hardest by the crisis with schools and daycare closing, experiences of unemployment, and housing or food insecurity. At the midpoint of the pilot, data shows that BYFSF families have higher rates of employment, are more likely to apply for college and trade schools, are more likely to be living independently and have higher annual incomes than the control group. This confirms the power of guaranteed income to improve the financial stability of families and create a more resilient economy. The BYFSF is a bold solution to ensure the economic security and dignity of Baltimore City residents.