Hundreds of Prince George’s County residents will begin receiving direct cash payments from the county, after the county council unanimously adopted a guaranteed basic income pilot program on Tuesday.

The pilot program, modeled after a California-based initiative, is designed to serve residents “intractably trapped” in a cycle of generational poverty and close the racial wealth gap by paying individuals a monthly stipend. (According to the U.S. Census, 11.5% of residents in the majority-Black county live in poverty.) Prince George’s County joins a growing number of localities across the U.S. experimenting with guaranteed income, where unlike other forms of financial government assistance, there are no strings attached or rules about how to spend it.

The $4 million program, according to the resolution, will be funded with $2 million from the county council’s general fund, and $2 million from the Greater Washington Community Foundation, the region’s largest philanthropic non-profit. Various philanthropic and local funds are expected to assist the pilot program as well.

In a county-wide newsletter, County Executive Angela Alsobrooks expressed concerns about funding the program given budget constraints this year.

“This year’s budget is tight due to a number of challenges we have to navigate,” Alsobrooks wrote. “It would be difficult for us to fund the remaining $2 million for this pilot program from our General Fund.”

She said the county is looking into different revenue streams and private investments to fund the program, which is needed to “uplift some of our most vulnerable residents.”

The Guaranteed Basic Income Pilot Program expected to run for 24 months, although the exact details — like the amount of each monthly payment — will be ironed out by a work group. In committee meetings prior to the resolution’s vote, councilmember Krystal Oriadha suggested they’d range between $500 and $800 per month for 200 residents.

Cosponsored by several members of the county council, the program would resemble the SEED (Stockton Economic Empowerment Demonstration) program in Stockton California. Launched in Feb. 2019, the pilot gave 125 randomly selected residents $500 a month to use how they pleased over 24 months. According to a 2021 study of the program, those payments holistically improved participants’ lives. Countering criticism that basic income programs disincentivize employment, the study found that the employment rate among recipients increased by 11%. A control group only saw a 5% increase in full-time payment over the same period. Recipients were healthier, less anxious and depressed, and experienced more stability in their lives month-to-month.

Prince George’s County now joins neighboring Montgomery County and D.C. — both which have seen similar programs piloted in recent years. In 2022, Montgomery County launched its guaranteed income pilot program, giving $800 a month to 300 individuals or households, one third of which are people transitioning from homelessness. Alexandria also stood up a guaranteed basic income program, sending $500 debit cards each month to 150 families.

D.C. experimented with a basic income model during the pandemic, under the THRIVE East of the River program. Funded by philanthropic dollars and overseen by four area nonprofits, THRIVE gave 590 families living east of the Anacostia River $5,500 dollars — either in one lump sum or spread out in monthly installments — to use however they’d like over a period of 18 months. An analysis of the program by the Urban Institute found that, much like SEED, the program improved residents’ mental and physical health. They worried less about feeding their families, caught up on bills, and paid for medical care. But despite the program offering stability and a bit of financial flexibility, the payments still could not offset the high costs of housing in D.C; most families still reported that they worried about making rent or being evicted.

Last year D.C. launched another basic-income pilot program, giving 132 low-income parents and expectant mothers $900 a month for a year — with no conditions attached on how they could spend it. The program is currently being assessed, but Mayor Muriel Bowser has proposed setting aside another $1.5 million next year to fund more related pilot programs. Councilmember Zachary Parker (D-Ward 5) has also introduced a bill to provide families in deep poverty with monthly payments of $1,000 per child.