Financial Interventions for Financial Hardship

(BEEM Trial)

Overseen By Abigail Arons, MPH

Age: 18 - 65

Sex: Any

Trial Phase: Academic

Sponsor: University of California, San Francisco

Disqualifiers: Other GI program, US residency, others

No Placebo Group All trial participants will receive the active study treatment (no placebo)

Approved in 1 Jurisdiction This treatment is already approved in other countries

Compensation: Varies

Number of Visits: Unknown

What You Need to Know Before You Apply

What is the purpose of this trial?

This trial explores how a Guaranteed Income (GI) affects the financial, emotional, and physical well-being of Black youth and young adults. Participants receive $500 each month for a year, either in the first or second year of the trial, to assess how this support impacts their future planning and mental health. The trial targets Black young adults aged 18-24 who live in low-income areas of San Francisco or Oakland and are not already part of another GI program. As an unphased trial, this study provides a unique opportunity to contribute to understanding the broader impacts of financial support on well-being.

Do I need to stop taking my current medications to join the trial?

The trial information does not specify whether you need to stop taking your current medications. It seems focused on financial and well-being impacts rather than medical treatments.

What prior data suggests that these financial interventions are safe for participants?

Research has shown that guaranteed income (GI) affects various areas of life. While studies often focus on economic and social impacts, they also provide insights into safety.

For example, recipients of a guaranteed income tend to use more routine and preventive healthcare, indicating better access to health services. This suggests no major negative health effects. Additionally, studies have not found evidence that GI causes serious health problems, indicating that receiving a guaranteed income is generally safe for participants. The concept involves simply providing money, which typically does not pose health risks.

Overall, research has not identified major safety concerns with guaranteed income programs. Participants usually experience positive social and economic benefits without negative health effects. ^{1 2 3 4 5}

Why are researchers excited about this trial?

Researchers are excited about this trial because it explores financial interventions as a novel approach to alleviating financial hardship, a condition typically addressed with social services or financial counseling. This trial uniquely examines the impact of a Guaranteed Income (GI) provided as direct cash payments. Unlike traditional methods that might involve budgeting advice or debt management, this approach directly supplements income, potentially offering immediate and tangible relief. By comparing the effects of receiving $500 monthly right away versus after a year, researchers aim to understand how timely financial support can influence economic stability and well-being. This fresh perspective could reshape strategies for addressing financial stress by emphasizing direct income support.

What evidence suggests that this trial's financial interventions could be effective for improving financial, emotional, and physical well-being?

Research has shown that guaranteed income (GI) can greatly enhance financial, emotional, and physical well-being. GI involves receiving regular cash payments with no conditions. Studies have found that it helps people manage their finances better and boosts their confidence. It also improves quality of life and is linked to better physical and mental health. A review of research found that GI can address poverty-related issues in wealthy countries. In this trial, participants will be divided into two groups: one group will receive a $500/month GI during the first twelve months, while the other group will receive the same GI in the second twelve months. Overall, existing evidence suggests that GI can effectively support well-being and future financial planning. ^{1 2 6 7 8}

Who Is on the Research Team?

Margaret Libby, MSW

Principal Investigator

MyPath

Sheri A Lippman, PhD

Principal Investigator

University of California, San Francisco

Marguerita Lightfoot, PhD

Principal Investigator

Oregon Health & Science University-Portland State University School of Public Health

Are You a Good Fit for This Trial?

This trial is for Black youth and young adults aged 18-24 living in specific low-income areas or marginally housed in San Francisco or Oakland. They must not be part of another GI project, have lived in the US for at least 3 years, and provide informed consent. Those under the influence during enrollment or planning to leave the Bay Area are excluded.

Inclusion Criteria

Must provide informed consent

Live in a low-income housing tax credit (LIHTC) qualified census tract (QCT) in San Francisco or Oakland. Youth who are homeless or marginally housed in San Francisco and Oakland are also eligible; those who are marginally housed will need a letter from a youth agency that can affirm their marginal housing status

Must have lived in the US for at least 3 years

Exclusion Criteria

Participation in another GI program at the time of enrollment

Have plans to permanently leave the Bay Area

Being under the influence of alcohol or other substances at the time of enrollment

Timeline for a Trial Participant

Screening

Participants are screened for eligibility to participate in the trial

2-4 weeks

Phase I

Participants receive $500/month Guaranteed Income (GI) for the first 12 months

12 months

Periodic cell phone-based text messages

Phase II

Participants receive $500/month Guaranteed Income (GI) for the second 12 months

12 months

Periodic cell phone-based text messages

Follow-up

Participants are monitored for financial, emotional, and physical well-being after the intervention

4 weeks

What Are the Treatments Tested in This Trial?

Interventions

• Financial coaching
• Guaranteed Income
• Peer learning circles

Trial Overview The study tests how Guaranteed Income affects financial stability, mental health, and healthcare use among participants. It includes a monthly income for one year plus access to financial coaching and peer learning circles to see if these interventions help with future investments and wellness.

How Is the Trial Designed?

Group I: Cash now Experimental Treatment 3 Interventions

Participants allocated to the "cash now" arm will receive a $500/month Guaranteed Income (GI) during the first twelve months of follow-up (Phase 1) and no GI in the second twelve months of follow-up (Phase 2).

Group II: Cash in a year Experimental Treatment 3 Interventions

Participants allocated to the "cash in a year" arm will receive no Guaranteed Income (GI) during the first twelve months of follow-up (Phase 1) but will receive a $500/month GI in the second twelve months of follow-up (Phase 2).

Guaranteed Income is already approved in United States for the following indications:

Approved in United States as Guaranteed Income for:

• Homelessness prevention
• Housing stability support
• Financial assistance for low-income families

Who Is Running the Clinical Trial?

University of California, San Francisco

Lead Sponsor

Trials

2,636

Recruited

19,080,000+

National Institutes of Health (NIH)

Collaborator

Trials

2,896

Recruited

8,053,000+

Oregon Health and Science University

Collaborator

Trials

1,024

Recruited

7,420,000+

MyPath

Collaborator

Trials

1

Recruited

300+

Published Research Related to This Trial

Cash transfers and guaranteed income programs are being explored as effective solutions to address income volatility, particularly in the context of recent economic challenges.

Stockton's guaranteed income experiment demonstrates that these programs can be designed to work alongside existing safety net benefits, ensuring that recipients do not lose essential support while receiving additional financial assistance.

NCBI (Pubmed)

pubmed.ncbi.nlm.nih.gov

Mitigating loss of health insurance and means tested benefits in an unconditional cash transfer experiment: Implementation lessons from Stockton's guaranteed income pilot. Baker, AC., Martin-West, S., Samra, S., et al.[2020]

Financial counselling and income-maximisation services can potentially improve family finances, with studies showing average annual gains of £1661 and £1919 for families referred to these services in Scotland and the UK, respectively.

While some studies indicated small to moderate benefits in child health and well-being, the overall evidence is limited and biased, highlighting the need for more rigorous randomized controlled trials to better assess the effectiveness of these healthcare-income maximisation models.

NCBI (Pubmed)

pubmed.ncbi.nlm.nih.gov

Connecting Healthcare with Income Maximisation Services: A Systematic Review on the Health, Wellbeing and Financial Impacts for Families with Young Children. Burley, J., Samir, N., Price, A., et al.[2022]

A systematic review of 27 studies on basic income-like interventions found mixed health effects, with notable positive impacts on outcomes like birthweight and mental health, but no significant effects on other health measures.

Employment outcomes varied, showing mostly small effects for men and larger positive effects for women with young children, suggesting that basic income may not lead to significant job loss and could improve certain socioeconomic conditions.

NCBI (Pubmed)

pubmed.ncbi.nlm.nih.gov

The public health effects of interventions similar to basic income: a scoping review. Gibson, M., Hearty, W., Craig, P.[2023]

Basic income interventions, such as unconditional cash transfers, have shown potential to improve health and wellbeing outcomes, including reductions in poverty and improvements in quality of life, based on a review of ten studies.

While the existing trials indicate positive impacts, more long-term studies are needed to strengthen the evidence on how basic income programs can effectively reduce health inequities.

NCBI (Pubmed)

pubmed.ncbi.nlm.nih.gov

How, why and for whom does a basic income contribute to health and wellbeing: a systematic review. McKay, FH., Bennett, R., Dunn, M.[2023]

A study involving 131 individuals receiving a $500 monthly guaranteed income for 2 years showed significant improvements in health and financial stability, including lower income volatility and reduced mental distress.

Participants reported better physical functioning and greater agency in pursuing employment and caregiving opportunities, suggesting that guaranteed income can be an effective public health intervention to enhance overall wellbeing.

NCBI (Pubmed)

pubmed.ncbi.nlm.nih.gov

Impact of Guaranteed Income on Health, Finances, and Agency: Findings from the Stockton Randomized Controlled Trial. West, S., Castro, A.[2023]

Citations

1. pmc.ncbi.nlm.nih.gov pmc.ncbi.nlm.nih.gov/articles/PMC11180702/

Effects of guaranteed basic income interventions on poverty ... Effects of guaranteed basic income interventions on poverty‐related outcomes in high‐income countries: A systematic review and meta‐analysis

2. urbanlabs.uchicago.edu urbanlabs.uchicago.edu/attachments/5ff88f36218ed7d9bee03d8b2e3f5e87998b51c9/store/71b4d2b6c98f6d7d0e4b8e5ac62db72a0139a748a1dc59ee192309d9e7cf/092024+IEL+GI+Literature+Review.pdf

A summary of existing research on guaranteed income. Guaranteed income (GI) refers to unconditional cash transfers to targeted communities, unlike UBI which is for all. GI may not meet basic needs.

3. sp2.upenn.edu sp2.upenn.edu/report-first-of-its-kind-guaranteed-income-program-in-rural-area-improved-financial-physical-and-mental-well-being/

Report: First-of-its-kind guaranteed income program in rural ... The program improved financial health, increased self-worth, enhanced quality of life, and improved physical and mental health, and helped ...

4. countyhealthrankings.org countyhealthrankings.org/strategies-and-solutions/what-works-for-health/strategies/universal-basic-income

Universal basic income Universal basic income (UBI) is a suggested strategy to improve individuals' financial stability and health outcomes.

5. basicincome.stanford.edu basicincome.stanford.edu/uploads/Umbrella%20Review%20BI_final.pdf

WHAT WE KNOW ABOUT UNIVERSAL BASIC INCOME UBI is a recurrent cash transfer to all community members, regardless of income, with no strings attached, often to cover essential living costs.

6. sustainability.stanford.edu sustainability.stanford.edu/news/guaranteed-income-can-lower-household-spending-while-reducing-debt

Guaranteed income can lower household spending while ... First, the finding that guaranteed income reduced recipient spending differs from earlier studies, including recent research in the U.S. showing ...

7. penncgir.org penncgir.org/research-library

Center for Guaranteed Income Research The research includes studies in locations like Ithaca, Newark, Oakland, and New Orleans, and white papers on policy frameworks and unconditional cash.

8. library.ca.gov library.ca.gov/crb/nexus/briefs/guaranteed-income-health/

Does Guaranteed Income (Unconditional Cash) Improve ... There is mixed evidence about guaranteed income's impact on health: there is good evidence on increased routine and preventive health care use, moderate ...