BET: Newark Mayor Ras Baraka: Guaranteed Income Bolsters Newark Families

Jasmine Browley, BET

In October 2021, Mayor Ras J. Baraka launched the Newark Movement for Economic Equity (NMEE) in Newark, New Jersey, a pioneering two-year guaranteed income pilot aimed at supporting residents earning less than 200% of the federal poverty line who were impacted by the COVID-19 pandemic. Now, the results of the program are in, and they are extremely promising, according to Baraka. 

The program randomly assigned 400 low-income families into two groups: one received $250 twice a month, while the other received $3,000 in lump sums twice a year. A control group of 478 individuals received no payments.  

Ras Baraka after being elected the new mayor of Newark, New Jersey:  - “I want to thank a lot of the voters who came out and voted for me. I think they showed tremendous faith and belief in me. It just makes me feel like I have a lot more to do." (Photo: Eduardo Munoz/Reuters)

Those in the recurring-payment group saw a sharp reduction in income volatility and enhanced ability to cover a $400 emergency by 18 months into the pilot, per a news release. The lump-sum cohort also maintained stronger emergency financial resilience as compared to the control group.

Beyond the financial, significant improvements emerged in other areas of life, according to the administration. Parents in both payment groups reported more quality family time, while their children showed better academic performance—including higher grades and AP course uptake. Among frequent movers or those facing housing instability, recurring recipients experienced a drop in homelessness rates from 3% to zero, while selected lump-sum recipients could better handle major transitions like moving. 

Food security also improved, according to Baraka’s report. The recurring-payment participants reported consistent gains beginning six months into the program, and levels remained elevated through its duration. 

Mental health outcomes improved as well; those receiving regular payments reported reduced stress and fewer symptoms of depression and anxiety over the first 18 months. Individual stories underscored the impact. One participant used her lump sum to escape a domestic violence shelter, securing stable housing for herself and her children.

“It was really tough begging your abuser to send you $500,” she shared. The guaranteed income felt like “a miracle.” 

Mayor Baraka emphasized the initiative is more than a local experiment; it’s a tested blueprint for statewide and national poverty reduction strategies. 

As he noted, “poverty is the result of failed policy, ending poverty will make our neighborhoods safer, our cities healthier, and our state more resilient.”

Read the original article here.

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