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A guaranteed basic income program launched last year in New Mexico has helped boost employment rates and housing security among immigrants, according to a new report.
Last February, the New Mexico Economic Relief Working Group and the anti-poverty nonprofit UpTogether rolled out the “New Mexico Guaranteed Income Pilot Program for Immigrant Families.”
Findings from the pilot program were published Tuesday.
As part of the program, 330 mixed-immigration status households in both rural and urban communities received $500 a month for 12 months — no strings attached.
After the year was up, 50 households were selected at random to receive $500 for an extra six months.
The report shows that overall, the additional funds eased the hardships mixed-status households routinely face in New Mexico.
The program was specifically created to help low-income immigrants, who fared worse during the pandemic than other New Mexicans, according to the report.
Mixed-status immigrant families are less likely to have health insurance, stable employment, savings, stable housing and food security, according to the report.
“Their exclusion from most of the social safety net further exacerbates their tenuous socio-economic conditions,” the report states.
“Despite the numerous challenges mixed-status families and undocumented workers face, our research also found that GI assistance can help reduce these inequities."
The number of participants who reported having trouble paying their rent or mortgage on time almost every month decreased by 35 percent after the 12-month pilot, report findings show.
And the group that received an extra six months of income experienced a 73 percent increase in the number of households reporting never having trouble paying their rent or mortgage on time, according to the report.
After a year of receiving funds, pilot program families noticed an increase in job security. Employment rates went up by 14 and 15 percent among rural households and families that received the six-month extension, respectively.
Families taking part in the pilot also noticed a change in their children.
The percentage of families that said their child was on track to complete their grade level and graduate increased by 9 percent after the program.
And that increase was even more profound among rural families. After the program, 13 percent more rural families with children reported that they were on track in school.
New Mexico is not the first place in the U.S. to try using a guaranteed basic income to address poverty. The approach has been tested by several cities in recent years.
Compton, Calif announced in 2020 that it would give cash payments to 800 low-income families.
Mobile, Ala. launched a guaranteed basic income pilot program for single mothers in 2021.
Los Angeles announced it would start a $24 million guaranteed basic income program in 2021 as well.