Guaranteed income for 100 struggling families will turn Tacoma into GRIT city

For too many, having one job is not enough. That’s the reality facing tens of thousands of residents in our area. Often they have more than one job and still struggle to meet monthly expenses.

Before the pandemic, nearly 40% of Americans reported they couldn’t afford a $400 unexpected expense. The current economic crisis is even more tenuous and uncertain.

In Pierce County, the average cost of healthcare, utilities, transportation and other essential living expenses is more than $72,000 a year per household, yet half the local household incomes are less than that.

This economic crisis is not news to us. Collaborative efforts with a network of community organizations have long sought to alleviate the pain of economic hardship, combat poverty head-on and bring resilience to our community.

A guaranteed income is another layer, and natural extension, to these efforts.

For this reason, Tacoma Mayor Victoria Woodards has partnered with Mayors for a Guaranteed Income (MGI) and United Way of Pierce County to implement a guaranteed income demonstration in the city.

We fondly refer to this as the GRIT Demonstration – a demonstration of Growing Resilience in Tacoma. Though not a panacea, a guaranteed income is expected to modestly supplement recipient income and public benefits in the hope of increasing economic security.

We don’t just want families to get on their feet temporarily. We want to create support systems to help them thrive. Guaranteed income provides recipients the fiscal means to address their most urgent needs and provides a cushion for unpredictable expenses, external shocks and volatility.

These funds are meant to supplement, rather than replace, the existing social safety net and can be a tool for racial and gender equity.

Providing a guaranteed income is not a new idea. Unrestricted cash programs have been implemented globally in places as far away as Kenya, South Korea, Brazil and the Netherlands.

There are several direct payment plans in the United States with encouraging outcomes. In MGI’s Stockton, California demonstration, recipients who received a guaranteed income found full-time employment at more than twice the rate of non-recipients.

A program in Jackson, Mississippi saw 80% of participants able to pay all bills without additional support; the number of participants with a completed high school education increased from 63% to 85%.

What’s most significant, however, is the impact on real people. “My son wanted to go to a football camp – I was able to pay for that. So he got to go. I was able to buy him some new shoes.” reported Mekie, a participant in the Stockton demonstration who works in warehousing and lives with her two teenage sons.

“It’s basically, it’s all about them… things got a little easier. So my car payments are on time now. So it’s better. Rent’s been getting better.”

Participants in the GRIT Demonstration will receive $500 a month for 12 months as a supplement to their income and other benefits. Qualified individuals must be Tacoma residents, single heads of household, and meet United Way’s ALICE criteria (Asset Limited, Income Constrained while Employed).

ALICE includes individuals above the federal poverty level and below 200% of poverty. One hundred participants will be chosen at random from a pool of qualified individuals. Funding comes from donations and fundraisers, not Tacoma taxpayers.

We’ll be telling stories of Tacoma’s guaranteed income demonstration and its impacts over the upcoming year.

It is our sincere hope that you’ll read here how our multifaceted, collective efforts eliminate poverty and provide a brighter future for all Tacoma residents.

Dona Ponepinto is president and CEO of the United Way of Pierce County.