Social Work Research

Abstract

Lack of income is a fundamental cause of homelessness, and guaranteed basic income may help address this problem. Concerns remain that unrestricted cash transfers could increase substance use or reduce employment. This mixed-methods study evaluated whether a social support program, with or without cash transfers, improved outcomes among people experiencing homelessness in California. A total of 760 unhoused individuals interested in a “phone buddy” program were randomized to receive the program (n = 523) or a waitlist (n = 237). Of those receiving social support, 256 were additionally randomized to receive $750 per month for one year. All participants completed surveys every three months for 15 months assessing housing, employment, loneliness, and substance use. Cash recipients reported monthly spending, and 27 were interviewed. At follow-up, 36% of cash recipients exited homelessness, 26% were employed, 67% reported high loneliness, and 49% reported substance use; no significant group differences emerged. Payments were spent on food and housing and supported housing transitions, vehicle living, and recovery. Employment gains were limited but present in some cases. Social support plus unconditional cash transfer is a viable policy option, although further research should explore optimal payment size, duration, and service integration.