The Denver Basic Income project began with a question: How might a guaranteed income with no strings attached impact homeless people in the city? In short, a guaranteed income may provide stability for close to half of the people participating, project leadership and research members said during a one-year analysis summary on Tuesday.

The Denver Basic Income Project (DBIP) is a non-profit run in partnership with the University of Denver’s Center for Housing and Homelessness Research. It began in January of 2021 and since then has provided over $9.4 million in aid to more than 800 people, according to a Tuesday news release.

The idea of a universal basic income (UBI) is not unique to Denver, and not even unique to the state. Former presidential candidate Andrew Yang campaigned on a platform built around a basic income for Americans. Since 2019, roughly 50 municipalities have tried the UBI model and several states continue to support them in one way or another.

But projects like this have run into legislative hurdles, as in Iowa which passed an outright ban on guaranteed basic income in May, according to the Des Moines Register. The Arizona House of Representatives voted to ban basic income in February and the Texas Supreme Court temporarily blocked a Houston-area program after the attorney general declared it unconstitutional, according to Business Insider.

Opponents of universal income programs consistently criticize them for being “socialist” and may discourage low-income people from entering the workforce.

But according to Aubrey Wilde, who represented the Colorado Coalition for the Homeless, employment isn’t always enough to help impoverished or homeless people.

“It’s important to remember that about 40% of folks who are experiencing homelessness do have jobs, so getting connected with employment isn’t always enough,” she said. “What we saw amongst our participants who came in to re-enroll for the extension was really exciting: People started their own businesses and they got good jobs.”

So far, the Denver Basic Income Project has not run into many legislative hurdles and enjoys support from the state and the City and County of Denver. Denver Mayor Mike Johnston and Councilmember Shontel Lewis both support the initiative. Lewis, unlike Johnston, enjoys the support of the Democratic Socialists of America, who endorsed her campaign when she ran for and won the District 8 council seat.

Rather, the project faces its most intense challenges from the nature of the homeless community and finding a sustainable source of funding. The Denver City Council approved a $2 million contract with DBIP in March, which built upon a previous contract from 2023 and one from the year before that utilized American Rescue Plan money.

There is a level of distrust that exists among homeless people, according to DBIP Founder Mark Donovan, as in many cases they are “used to being locked down” by traditional aid programs.

“When we actually start delivering the unconditional cash… people are really moved and we see this wall of distrust lowered quickly,” he said. “(We’ve) had people say to us, ‘I’m clean and sober because of this program.’ They came to it on their own because they were feeling hope.”

One aspect that sets DBIP apart from something like federal unemployment benefits is the plan to have perpetuity of income. The project set out hoping to learn what happens when people have a sustained income floor, Donovan said, adding it also worked to compare their approach with “the status quo.”

The unconditional nature of the cash payments is, according to Maria Sierra the community engagement manager at DBIP, critical to the success of the program. But there is a societal challenge to their work, as many people will default to a system that has checks and balances, she said. This may discourage some of the most vulnerable from applying for aid they need.

“It’s a huge challenge to change the mindset, to change the narrative around the community we’re serving, that they know what’s best for themselves and that they do make the right decisions,” Sierra said. “(Especially) when they have access to a resource like direct cash to change their lives.”

The project enrolled a total of 807 homeless people in Denver, more than 600 of whom agreed to participate in the research. By the 3rd milestone, called “timepoints” by DBIP, roughly 400 continued to participate in the research.

Participants were randomly split into three groups. The first group received $1,000 per month for 12 months. The second got a lump sum of $6,500 and then 12 monthly payments of $500. The third group only received $50 per month for 12 months.

Early results shared by DBIP seem to indicate moderate success. When the program started, less than 10% of participants had some form of housing. By the end of 10 months, at the programs third check in, 45% of those who continued to respond owned or rented some kind of housing

But the numbers only tell half the story, Sierra said, highlighting some of the qualitative findings from the group.

“Participants shared having reduced financial stress, which highlights the Denver Basic Income Project’s role in contributing to crucial financial stability,” she said. “The monthly payments enabled significant life improvements for some participants, such as changing their housing situation or the ability to purchase a car.”

In fact, the perception of housing stability rose. At the start of the program, one in five participants believed their housing was stable. That increased fivefold to nearly half reporting feeling that their housing situation was stable at the end of 10 months.

But despite their moderate success and the sustained popularity of basic income projects nationwide, staff with DBIP watch other states somewhat warily. Specifically, Wilde pointed to Iowa, Arkansas, Idaho and South Dakota — all of which have banned no strings attached cash payments.

After a basic income project started in Iowa, state Sen. Brad Zaun (R-Urbandale) railed against it. He called the program a form of socialism and criticized its use of American Rescue Plan Act money, which when used up, means the burden will fall on the taxpayer.

The bill was approved and sent to Iowa Gov. Kim Reynolds, who signed it in May making Iowa the latest state to ban such projects.

These efforts deeply worry DBIP and homelessness resolution staff who said they need to prioritize a level of advocacy for the program in order to sustain its future.

“We need to be really vigilant about pushing back against the narratives that some of those lawmakers and national agencies are pushing,” Wilde said. “We need to elevate this, these positive impacts that we’re seeing both qualitatively and quantitatively, so we can prevent any of those policies from passing in Colorado or in Denver.”