These Iowans were given $500 a month. Here's how they spent it.
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A universal basic income project in central Iowa found that giving low-income families $500 a month helped them take action to improve their households.
Why it matters: While some may assume that people work less if they're given money, the study found the opposite occurred, allowing people to pursue additional education, focus on their careers and get more stable transportation.
State of play: UpLift, Iowa's first basic income pilot, released its findings this month after providing two years of payments to working families across Polk, Dallas and Warren counties through prepaid debit cards.
By the numbers: Participants came from 20 cities, including Des Moines, Ankeny, Waukee, West Des Moines, Urbandale, Norwalk and Perry.
- 250 people participated, with 110 participants receiving payments and 140 as a control group.
- The average household had two adults and two children. Adults averaged around 37 years old, and children averaged around 8 years old.
- The average annual household income was $24,542, and 75% of households also received state public benefits.
Zoom in: Inflation, rising rents and decreased public benefits offset many of the expected financial gains during the project from May 2023 to April 2025, per University of Pennsylvania researchers, who helped with the study.
- The majority of the money (40%) was spent on food and groceries, followed by retail (28%) and transportation (11%).
Reality check: Because Iowa didn't grant UpLift a benefits waiver, unlike some other states, the $500 created trade-offs.
- Section 8 holders saw their rent go up $150 a month. Participants receiving Social Security faced a guaranteed $480 monthly reduction, netting just $20 in new income.
Yes, but: Despite rising costs, participants reported that food insecurity and household stress dropped around the six-month mark and they gained more household predictability around the one-year benchmark.
- Families also felt more hope and that they mattered, thanks to the provided income.
While many consider hope as an abstract feeling, Nalo Johnson, head of the Mid-Iowa Health Foundation, tells Axios that it has psychological ties to economic mobility.
- Many of the participants already have goals, and the additional $500 helped them feel confident enough to act on them.
- One participant was able to purchase a car and then attend a job training class, per the report. A single mother with three kids moved to a safer environment. A participant quit one of her two jobs and focused on her career, helping her earn a promotion.
The other side: Iowa passed a law in 2024 prohibiting local governments from implementing basic income programs.
- Republican lawmakers at the time said the programs could be used to subsidize employers who pay low wages, and may prompt people to work fewer hours, per Iowa Capital Dispatch.
What's next: UpLift is moving on to a new study focusing on the influence of emergency rental assistance in central Iowa, and how long the assistance should be provided to help stabilize a household.