"A USC study found 48% of homeless people receiving $750 monthly exited homelessness versus 43% without the cash - a difference too small to be statistically significant. Recipients, however, were able to bring more stability to their lives. They overwhelmingly spent stipends on essentials such as food, transportation and clothing, with only a small portion going to alcohol and drugs. Researchers recommend pairing future cash programs with targeted housing assistance to improve housing outcomes."
"At the same time, the study found participants used the money to bring more stability to their lives and overwhelmingly spent the cash on essentials such as food, transportation and clothing - not drugs and alcohol. "These findings highlight the strengths and limitations of cash transfers," the authors wrote in a report. Henwood put it like this: "It wasn't like, 'Here is the money - boom, everything is better.' But we did see that it shifted people's trajectories.""
A yearlong cash program provided $750 per month to unhoused participants while a control group received no cash. Among recipients, 48% exited homelessness versus 43% of controls, a relative 20% higher likelihood that did not reach statistical significance and did not establish cash as the definitive cause of improved outcomes. Recipients overwhelmingly used funds for essentials—food, transportation, and clothing—with only a small portion spent on alcohol or drugs. Recipients reported greater day-to-day stability and modest trajectory shifts. Program partners included a university research center and a nonprofit; recommendations call for pairing cash transfers with targeted housing assistance to improve permanent housing outcomes.
Read at Los Angeles Times
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