Economy

In Stockton, Early Clues Emerge About Impact of Guaranteed Income

A universal basic income experiment in Stockton, California, is nearly halfway over. How has $500 a month affected the lives of 125 residents?
Susie Garza, who is participating in Stockton's UBI pilot.Rich Pedroncelli/AP

A totaled car. A mother with cancer. Two kids at home, with field trips and Quinceañera outfits and football gear to pay for. Rent bills of $1,250 due each month. Two jobs—one part-time—both paying around $15 an hour, supplemented by unpredictable child support payments. Lorrine Paradela used to lie awake at night, thinking through all her expenses and income streams, struggling to breathe from the stress of it all.

Now, Paradela says, she’s started sleeping again. She’s one of 125 Stockton, California, residents who have been receiving an unconditional $500-a-month payment since February, as part of the first mayor-led guaranteed income initiative piloted in the United States. Called Stockton Economic Empowerment Demonstration (SEED), it’s the passion project of Stockton Mayor Michael Tubbs, and funded by the Economic Security Project, a nonprofit that sponsors other guaranteed income experiments. Eight months into the 18-month project, researchers have released preliminary data about who’s participating, what they’re spending the money on, and how raising the income floor can change the entire structure of a life.