Chicago Future Fund: The Impact of Guaranteed Basic Income on the Lives of Post-Incarceration Individuals
Overview
The Chicago Future Fund (CFF) is the first guaranteed income pilot program in the United States specifically for formerly incarcerated individuals. The program was first launched in 2021, providing monthly cash payments of $500 to 30 post-incarcerated residents of West Garfield Park. In February 2023, Equity and Transformation (EAT) expanded the pilot in its second round, increasing participation to 100 post-incarcerated individuals from Austin, West Garfield Park, and Englewood. Conducted from March 2023 to February 2024, the study aimed to evaluate the effects of guaranteed basic income (GBI) on financial security, employment, housing, and mental health while addressing recidivism rates. These communities face systemic racial and economic inequities, such as high unemployment rates, urban disinvestment, and significant police presence, making the insights from this program critical for policy discussions.
Key Findings
Financial Stability:
The percentage of participants behind on bill payments dropped from 76% at the start of the program to 58%, an 18-point reduction.
Most participants used the stipend to pay for necessities, childcare, and housing-related expenses.
Employment:
92% of unemployed participants actively sought work, debunking myths that GBI discourages employment.
28% engaged in informal work during the program, with a notable decline in "side hustles" by the end of the year.
Housing Security:
Homelessness rates among participants decreased by 11 percentage points, from 35% pre-program to an average of 24% during the program.
Monthly stipends allowed participants to improve housing quality and stability.
Mental and Physical Well-Being:
Nearly all participants (33 out of 34 interviewed) reported reduced stress and improved well-being due to the predictable monthly income.
Participants with disabilities or chronic health issues noted improvements in quality of life.
Recidivism and Law Enforcement:
Only three participants were reincarcerated during the program, far below the Illinois state recidivism rate of 40%.
Broader Implications:
The Chicago Future Fund demonstrates the potential of guaranteed income to empower system-impacted individuals and reduce the structural barriers they face in employment, housing, and financial security. However, the study highlights the need for GBI programs to operate alongside broader social service reforms to address systemic inequities comprehensively.
Policy Recommendations
Implement federal laws prohibiting employer discrimination based on criminal records.
Remove barriers preventing formerly incarcerated individuals from accessing housing subsidies and social programs.
Expand GBI initiatives for system-impacted individuals to reduce recidivism and promote community well-being.
Additional Notes: This study underscores the necessity of pairing GBI programs with reforms across housing, employment, and social services to address systemic racism and economic exclusion effectively.