ITSA Newsletter: April 2024 Edition

The biggest new happenings in the world of basic income

Here’s the latest and biggest Basic Income news:

‣ Texas district judge rules against lawsuit trying to stop basic income pilots

‣ Iowa bans basic income pilots, prematurely ending an ongoing pilot

‣ More results from more successful basic income pilots now available

‣ Minnesota may become first state to do a statewide monthly basic income pilot

‣ Farmers in the UK begin calling for basic income in response to Brexit

‣ Results of the 30-year long natural UBI experiment that everyone needs to know

ITSA News Update:

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Texas judge rules against lawsuit trying to stop basic income pilots [link]

  • Texas’ Attorney General recently filed a lawsuit in order to put a stop to basic income pilots in Texas, claiming they are unconstitutional.

  • A judge has just ruled that such pilots are not in fact unconstitutional and can proceed as scheduled.

  • The ruling is expected to be appealed.

Iowa bans basic income pilots, prematurely ending an ongoing pilot [link]

  • A bill that had already passed through the House in Iowa just recently also passed through the Senate.

  • The vote was entirely along partisan lines, with all Republicans voting for it and all Democrats voting against it.

  • The bill is expected to be signed into law by the governor.

  • After being signed, an active pilot in Iowa named UpLift will be forced to prematurely end in January instead of May as scheduled, making this pilot the first U.S. pilot to be canceled early.

More results from more successful basic income pilots now available

  • Seattle, Washington: When 102 people got $500/mo for 10 months, employment nearly doubled (37% to 66%). Income from employment also went up by $410/mo on average. Health and well-being improved.

  • San Antonio, Texas: When 1,000 people got a one-time payment of $1,908 followed by $400 every 3 months for almost 2 years, incomes from work went up. 40% of participants reported spending more time with their families and in their communities. Participants also said monthly payments instead of quarterly payments would be better.

  • Cambridge, Massachusetts: When 130 people got $500/mo for 1.5 years, employment increased. Full-time employment among recipients went from 36% to 40%. Among non-recipients, FT fell from 30% to 28%. Incomes from work also went up. Time spent with their kids went up, which also resulted in improved educational outcomes for their kids.

Minnesota may become first state to do a statewide monthly basic income pilot [link]

  • Lawmakers in Minnesota are considering sending $100 million to 10,000 people as basic income

  • This is after 5 successful pilots have already been run in the state.

  • Recipients would get $500 a month for 18 months and would need to be under 300% of the poverty line to start, but the income would not be lost if they went above that line during the 18 months.

Farmers in the UK begin calling for basic income in response to Brexit [link]

  • A coalition of at least 100 farmers calling themselves BIFARMERS is demanding a universal basic income for all farmers in Britain.

  • “UBI could be an amazing part of a just transition policy, to help support people with environmental land management… there’s a real hunger for sustainable farming, but they need support.”

  • No specific amount of basic income has been decided upon to push for.

Results of the 30-year long natural UBI experiment that everyone needs to know [link]

  • In 1994, a group of kids in poverty who were already part of a long-term study of kids growing up in poverty saw their poverty decrease due to basic income from casino profits

  • As adults, those who received the UBI use less alcohol and fewer drugs. They commit fewer minor crimes, and are more likely to graduate from high school. Teen pregnancies are less common in this group, and at age 26, the average IQ of this group is a bit higher.

  • Economists tracked the costs of the UBI versus the savings in expenditures on crime and medical care and found that by age 26, the benefits had exceeded costs by a factor of three to one.

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Scott Santens

Founder & President, ITSA Foundation