California ‘basic income’ experiment fails to provide ‘financial independence,’ study finds

A recent study by researchers at the University of California, Davis, reveals that a California pilot program designed to provide guaranteed income failed to achieve its goal of long-term financial independence for participating families. Instead of the anticipated uplift, the program offered only short-term relief for those involved.

The initiative, known as the Yolo County Basic Income (YoBI) program, offered unconditional cash support to a select group of vulnerable residents. Despite this aid acting as a temporary safety net, the study concluded that the vast majority of participants remained trapped in the cycle of poverty.

The study highlighted that while the basic income payments eased some immediate financial pressures and provided a semblance of stability, most families continued to face significant financial challenges. “Despite reduced financial urgency, many participants still had unmet needs,” the study noted.

This program was distinct from a typical Universal Basic Income (UBI) system, as it concentrated solely on families with young children under six who were already part of California’s CalWORKs initiative and dealing with homelessness or unstable housing situations.

Nolan Sullivan, who served as the interim director for Yolo County Health and Human Services, characterized the program in 2022 as a “super targeted basic income” (TBI), highlighting its focused approach.

Nolan Sullivan, the former interim director of Yolo County Health and Human Services, described the initiative in 2022 as a “super targeted basic income” (TBI).

“It’s not just like randomly distributing wealth amongst a group of people,” Sullivan said at the time. “We are laser-focused on one particular group … really trying to break the rule of generational poverty.”

Under the pilot, participants received monthly checks averaging $1,289 for a two-year period. The goal was to raise family income to 200% of the federal poverty level.


Hands holding and fanning out several hundred-dollar bills.
Yolo County is one of many local municipalities providing no-strings attached cash assistance in an attempt to alleviate poverty. Shutterstock / PeopleImages

The UC Davis findings, published in the International Journal of Environmental Research and Public Health, highlight a recurring theme in guaranteed income experiments, the “survival mode” trap.

Participants reported that while the cash helped cover predictable expenses and pay down debt, it did not provide a cushion for the “unexpected.” Researchers noted that car repairs, medical bills or a sudden loss of employment quickly wiped out any progress made through the monthly stipends.

One participant told researchers that, without the program, the participant would likely be “out there looking for places to sleep.” However, the study concludes that, despite these “lived experience” successes in preventing homelessness, a clear path to total financial self-sufficiency remained elusive for most.

Despite the lack of long-term financial independence cited in the Yolo County study, advocates continue to push for the expansion of such programs. Similar pilots have popped up across the country, with Cook County, Illinois, recently turning its pilot into the nation’s first permanent guaranteed income program.

Critics, however, argue that these programs create a “fiscal cliff” by which recipients struggle even more once the temporary government funding expires.

Yolo County officials did not respond to Fox News Digital’s request for comment.

You May Also Like

Video released by U.S. Southern Command shows a suspected narco-trafficking vessel erupting into a fireball during a U.S. military strike in the Caribbean.

US Military Strikes Alleged Narco-Trafficking Vessel, Killing 4

The U.S. military launched a deadly strike Saturday against a vessel in…
Brooklyn woman arrested after fleeing attempt to snatch 4-year-old boy from grandma outside McDonald's

Brooklyn Woman Arrested After Attempted Kidnapping of 4-Year-Old Outside McDonald’s

A 47-year-old woman accused of trying to take a 4-year-old boy from…
Hundreds of dead chickens found abandoned in NYC U-Hauls: cops and activists

Hundreds of Dead Chickens Found in Abandoned NYC U-Hauls

Hundreds of chickens abandoned in Brooklyn were facing what animal rights activists…
Crocodile found illegally dumped on Long Island nature preserve walking trail

Illegally Dumped Crocodile Found on Long Island Nature Trail

A two-foot crocodile was discovered this week at a Long Island nature…
Donald Trump bans media from White House: MS NOW, CNN and Politico say journalists were denied access to The White House

Trump Administration Denies White House Access to Reporters From CNN, Politico and MS NOW

WASHINGTON — Reporters for CNN, MS NOW and Politico were denied entry…
Lawsuit says Anthropic, OpenAI, SpaceXAI and Google made illegal agreement on AI development slowdown

Lawsuit Alleges Anthropic, OpenAI, SpaceXAI and Google Made Illegal AI Development Slowdown Pact

Anthropic, OpenAI, SpaceXAI and Google are accused in a new lawsuit of…
Arizona 'goon' Talyn Vigil arrested for 3rd time while awaiting trial for allegedly killing teen in mob attack

Talyn Vigil Arrested 3rd Time While Awaiting Teen Death Trial

An Arizona “Gilbert Goons” gang member accused of killing a teenager in…
1B Barrels Through Hormuz, ‘Ironclad Blockade’ Holds Iran at 0

1 Billion Barrels Pass Through Strait of Hormuz as Iran Oil Exports Remain at Zero Under Blockade

U.S. forces have helped move more than one billion barrels of crude…
Thousands of volunteers hit LA beaches in massive coastal trash cleanup

Thousands Join Massive Coastal Trash Cleanup Across Los Angeles Beaches

Thousands of Los Angeles County residents set aside their usual Saturday routines,…
Lawsuits filed in California over Nazi-looted art displayed in museums in Los Angeles, Auschwitz

California Lawsuits Challenge Museums Over Nazi-Looted Art in Los Angeles and Auschwitz

Heirs of Jewish Holocaust victims and their representatives have filed two California…
Captain America, R2-D2 fly above Lucas Museum of Narrative Art on opening night in dazzling drone light show: Photos

Captain America, R2-D2 Soar Over Lucas Museum in Drone Show

The opening-night gala for the Lucas Museum of Narrative Art lit up…
'Devoted' father and grandfather-to-be swimming at popular beach killed in suspected shark attack

Devoted Dad, Grandfather-to-Be Dies in Suspected Shark Attack

A 63-year-old “devoted” father and soon-to-be grandfather was reportedly killed by a…