- Google is co-funding a $2.8 million guaranteed income pilot in California's Bay Area.
- The program will give $12,000 over a year to 225 families to help them secure long-term housing.
Alphabet-owned Google is co-funding a pilot program that will give $2.8 million to 450 California families on the verge of homelessness to test whether the cash helps them secure long-term housing.
Google.org, the search giant's philanthropic arm, will help provide 225 families with $1,000 a month in guaranteed basic income for 12 months, on a rolling basis over five years. Another 225 families will serve as a control group and receive $50 a month over the same period.
Google's funding partner is J-PAL North America, a regional office of the Abdul Latif Jameel Poverty Action Lab, a global research center based at MIT.
The "It All Adds Up" program will hand the no-strings-attached cash to families that have recently taken part in housing programs provided by non-profits, and are one to three months away from losing their housing subsidies.
The program's website says that more than 70% of the families enrolled in the pilot are headed by single mothers of color with children under five.
NYU's Housing Solutions Lab will analyze the pilot's results to gauge how effective the payments are in helping families remain in long-term housing. The university's researchers will also assess the impact on participants' health and financial outcomes.
Google's financing role is part of its $1 billion pledge to fight the housing crisis in San Francisco and surrounding areas. Basic income projects have surged in popularity in recent years, in part because data shows they're an effective tool in combating poverty, and participants overwhelmingly spend the money on essentials such as food, housing, and transportation.
Google is known for the generous perks it provides employees, including free food, transportation, and a discounted on-campus hotel.
While it has cut back on perks in recent years, there's a stark contrast between the immense wealth of California's biggest tech companies and their well-remunerated employees, and the many locals struggling to afford basic living expenses.
Alphabet's stock price has jumped 20% this year as investors bet it will be a massive winner from the AI revolution. Revenues surged 15% to $80.5 billion last quarter, driving net income up 57% to about $23.7 billion.