Launched in 2022, Miracle Money: California is a program designed to provide relational and financial support to people experiencing homelessness. In response to promising results that emerged from a pilot study conducted by Miracle Messages, a nonprofit organization, Miracle Money California focused on scaling distribution to a greater number of people experiencing homelessness and building in time to learn about both the process and impact of direct cash transfers in this context.
Conducted in partnership with researchers at the University of Southern California, the accompanying mixed-methods study is among the first randomized controlled trials (RCTs) of basic income in the U.S. specifically for people experiencing homelessness, and the first to explicitly test the role of relational resilience that has been shown to buffer stress and foster stability. The study was designed to better understand the impact of cash distribution plus social support to 103 participants living in either the San Francisco Bay Area or in Los Angeles County who received $750 per month for 12 months. Between 2022-2024, nearly $1 million was distributed directly to these participants as part of the study.
While close to half of all participants exited homelessness during the course the study, our findings showed that monthly payments did not lead to statistically significant differences in homelessness exits or employment. However, qualitative interviews and reporting on how the funds were used revealed the utility of flexible cash as well as social support services for providing: Essential Needs and Choice, Stability and Dignity, and Human Connection.