Healthy foods, like olive oil, are a luxury for Char Reavis. But that was among the first things the Lane County resident bought when she got her federal stimulus check in 2020.
鈥淵ou know, that was incredible,鈥� said the 60-year-old Reavis, who survives off of monthly social security disability payments and SNAP benefits. 鈥淚 just couldn鈥檛 get fresh and healthy foods on my income. But when I had the stimulus I could buy that way and still pay all my bills.鈥�
Reavis also put the stimulus money towards an overdue oil change on her car. And she put some of the cash into a savings account, something she hadn鈥檛 been able to do for a very long time. Reavis said the extra money relieved financial burdens.
鈥淚 don鈥檛 think people understand when you鈥檙e really low income, the kind of stress that you鈥檙e under,鈥� said Reavis. 鈥淵ou have to make choices about paying your rent or paying your electric bill or taking care of yourself, which usually ends up at the bottom.鈥�
that the federal stimulus payments, including the monthly child tax credits, were a mass universal basic income experiment. The idea of universal basic income is to give out regular cash payments, with no strings attached, to create an income floor that would help prevent poverty. More targeted versions of the idea are known as basic income or guaranteed income.
The federal stimulus plan, which had some eligibility requirements, was designed to provide economic relief to Americans affected by COVID-19. data showed most people used the extra money like Reavis did: on basic household needs, like food, or they paid down existing debt.
Now, a bill in the Oregon Legislature is looking to set up a payment program that would give $1,000 a month to low or no income Oregonians over a two-year period. If passed, it would create the nation鈥檚 first statewide guaranteed income program. The proposal has sparked heated debate on the idea of unconditional cash and how it would alleviate Oregon鈥檚 homelessness and housing crisis.
, sponsored by Sen. WInsvey Campos (D-Aloha), would appropriate $25 million to create the People鈥檚 Housing Assistance Fund Demonstration Program. Oregonians who earn at or below 60% of area median income and are not receiving housing assistance would be eligible to participate in the pilot program. In addition to unrestricted payments, the bill would require the program undergo a comprehensive study of its implementation and outcomes.
Additionally, the pilot would be capped at 1,000 participants.
The statewide affordable housing advocacy group , or ROC, is the driving force behind the guaranteed income proposal. The group, made up of affordable housing tenants and social workers, formed in 2019 with the goal of improving housing policies in Oregon. Reavis is a founding member. She said the idea behind SB 603 came about after ROC discussed ways to increase financial stability for people with low incomes. Stimulus checks and basic income came to mind.
鈥淗aving enough income to be able to do what they needed to do to get into stable housing and into stable jobs, that was a big deal for people,鈥� said Reavis.
There鈥檚 been an influx of guaranteed income pilot programs throughout cities in the U.S. over the past decade, including in the Pacific Northwest. has been providing $500 of unconditional cash to 100 Black mothers in Multnomah County since the summer of 2022. , wrapped up last December.
The Tacoma program is one of 35 basic income programs being studied by the (CGIR). The center looks at how basic income affects people鈥檚 everyday lives and evaluates the design and implementation of the programs. Dr. Stacia West, a professor at the University of Tennessee鈥檚 College of Social Work, is a co-founder of the research center. West said most of the programs she studies are still in the data collection process so it鈥檚 too early to make a definitive decision on the effectiveness of basic income programs. But early data is promising.
鈥淲e don鈥檛 see any negative effects thus far,鈥� said West. 鈥淵ou see positive outcomes as it relates to mental health and well being, as well as financial outcomes.鈥�
West said participants mostly spent money on services and food to take care of their families. Forty-two percent of the more than 7,300 participants reported spending cash on retail sales and services, according to the , a data visualization partnership between CGIR, the Stanford Basic Income Lab and Mayors for a Guaranteed Income. This share of expenditures included both small and big box stores where people buy things like toiletries, clothing, cleaning supplies, school supplies and medical items. It also included work for paid professional services, like a plumber or auto mechanic. The second largest share of participants鈥� money, 27%, went toward food and groceries.
鈥淣o one knows what a family needs more than the family itself,鈥� said West about the importance of unconditional money. 鈥淭he flexibility is really key and also speaks to the freedom and dignity to make your own decisions about your financial life.鈥�
But despite the amount of national attention SB 603 has received, the potential for a statewide guaranteed income program in Oregon appears to be minimal. SB 603 may not make it far in the Legislature this year.
Republican senators slammed the bill on the senate floor this week. Many opposed to it equate the no-strings attached payments to handouts and fear that, with no restrictions, the money could be used to buy drugs or alcohol.
Others say taxpayer money should be used in more direct ways to address Oregon鈥檚 housing crisis. On the Senate floor this week, Sen. Dick Anderson (R-Lincoln City) called the bill a Band-Aid.
鈥淭he bill is certainly well intended, but I believe it will only exacerbate an issue that can be addressed through other means,鈥� said Anderson. 鈥淲e need to stay focused on the production of housing units.鈥�
Both the advocates at ROC and the sponsor of the bill, Sen. Campos, agree that affordable housing should be the legislative priority. But they also see SB 603 as a way to bring financial stability to Oregonians who are housing insecure.
鈥淲e have to explore all the options available to us,鈥� said Campos in an emailed statement. 鈥淲e know that direct cash payments are an effective antidote to poverty and it keeps people in their homes.
For now, SB 603 is running up against a key deadline in the state Legislature. If a work session is not scheduled for the bill by March 17, it will be considered dead.
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