- The Denver Basic Income Project just got an extension and more funding.
- The project offers up to $1,000 a month to Denver's poorest residents.
- The project said it's provided $6.5 million to residents since it began in November 2022.
A Denver guaranteed basic income plan that gives some residents up to $1,000 a month is being extended after new investments from the city and others.
The Denver Basic Income Project, which now provides monthly payments to 800 of the city's lowest-income households, announced it is extending its runtime for another six months.
The city of Denver has provided $4 million to the project since it first launched, and now a $3 million donation from the Colorado Trust and a donation from an anonymous foundation are helping the organization continue its work, according to Axios.
The project's founder and executive director, Mark Donovan, said he is "thrilled" about the expansion and is proud of the "significant impact" the project has had on the city since its launch in 2022.
"Many participants reported that they have used the money to pay off debt, repair their car, secure housing, and enroll in a course," Donovan previously told Business Insider. "These are all paths that could eventually lead participants out of poverty and allow them to be less dependent on social support programs."
Dia Broncucia, 53, and Justin Searls, 45, earlier told BI that they enrolled in the program after they became homeless during Broncucia's fight with breast cancer. The $6,500 that both received up front helped the couple rent an apartment, buy a car, and start stabilizing their life, they said.
The Denver Basic Income Project said in a statement that more participants are living in rented or owned homes and fewer participants are sleeping outside than when the project began, citing a study from the Center for Housing and Homelessness Research at the University of Denver.
Many cities around the United States are experimenting with basic income projects to alleviate homelessness and support their most vulnerable residents. In Baltimore, for example, the Baltimore Young Families Success Fund gives young mothers up to $1,000 monthly. The campaign's director of policy, Tonaeya Moore, told BI that surveys show that participants largely spent their money on the same general necessities, like bills, rent, and food.
But while basic income plans have largely shown success, not everyone is in favor of them, and many programs have drawn the ire of conservative lawmakers.
Last week, a Texas state senator called a guaranteed income program in Harris County, which includes Houston and is offering $500 a month to the area's poorest residents, unconstitutional. And in Iowa, two Republican lawmakers introduced a bill to ban universal guaranteed income plans in the state, calling them "socialism on steroids."
Denver Mayor Mike Johnston, a Democrat, voiced his support for the project in a letter, saying it serves as an "important tool" in the fight against homelessness.
"This initiative complements our efforts to expand affordable housing, mental health services, and other critical resources to prevent and alleviate homelessness in Denver," Johnson wrote. "I am proud to endorse the Denver Basic Income Project and its vital role in our ongoing efforts to address homelessness and improve the lives of our residents."