Support for guaranteed basic income initiatives

In the past five years, we have worked with several Bay Area GBI programs, including:

• BEEM: Black Economic Equity Movement
• Foundations for the Future (SFHSA)
• Guaranteed Care Income
• Yerba Buena Center for the Arts Guaranteed Income for Artists
• It All Adds Up – Bay Area Thriving Families Study
• Tipping Point Community GBI pilot program

GBI programs are taking off across the country because studies show they are a promising anti-poverty intervention. Direct cash payments with no other requirements increase the health, wellbeing, and economic mobility of participants. See data from:

• Stockton Economic Empowerment Demonstration
• Abundant Birth Project
• Magnolia Mother’s Trust 
• Denver Basic Income Project 

Public benefits are benefits administered by the federal, state or local government that can help pay for or provide access to food, housing, medical care, and other basic living expenses. Common public benefits are: CalWORKs, Supplemental Security Income, General Assistance, Unemployment Insurance, California State Disability Insurance, Medi-Cal, Medicare, CalFresh, and Section 8 subsidized housing.

GBI payments can affect eligibility for or the amount of some public benefits. The good news is that as GBI programs become more common, public benefits’ program rules have changed significantly to avoid potential negative impacts of GBI payments on public benefits.

GBI payments should not impact CalFresh benefits (also known as SNAP or Food Stamps) if the program sponsoring the GBI payments receives some private or non-governmental funding, per 7 CFR 273.9(c)(19). If you receive CalFresh, you will still need to report the GBI income, but it should not count against your aid. You will need to show proof that you are participating in a GBI program and that the GBI program receives private funding.

The way GBI income affects your Medi-Cal will depend on the type of Medi-Cal you receive.  Most Medi-Cal recipients in California receive Modified Adjusted Gross Income (MAGI) Medi-Cal. MAGI Medi-Cal eligibility is based on your income. Non-MAGI Medi-Cal is given to people who are over age 65 or receiving other benefits including Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and CalWORKs. If you are unsure whether you receive MAGI Medi-Cal or non-MAGI Medi-Cal, you can ask your county which program you are on. If you have questions specific to how GBI payments or other income may affect Medi-Cal eligibility, you may call BayLegal’s Health Consumer Center at 1-855-693-7285.

MAGI Medi-Cal
Eligibility for MAGI Medi-Cal is based on your taxable income. Most California GBI programs structure GBI payments as a gift, which is generally not taxable. If this is the case, GBI payments should not impact your eligibility for Medi-Cal.  Even though it should not impact eligibility, you still must report this income. You will need to show proof that you are participating in a GBI program.

Non-MAGI Medi-Cal
The impact of GBI on non-MAGI Medi-Cal will depend on how you qualify for non-MAGI Medi-Cal. If you are getting non-MAGI Medi-Cal because you are receiving SSI or CalWORKs then your Medi-Cal will be protected as long as you maintain eligibility for the other benefit. If you are getting non-MAGI Medi-Cal because you are over age 65 or receiving SSDI then the GBI money would count as income. While your Medi-Cal is not likely to be terminated, you may be assessed with a “share of cost.” This would mean that your Medi-Cal is no longer free. A share of cost could be high enough to make your Medi-Cal inaccessible. If you are over age 65 or have a disability and receive Medi-Cal, you should talk to a benefits counselor or contact BayLegal’s Health Consumer Center before you enroll in a GBI pilot.

If you receive WIC and also CalWORKs, CalFresh, or Medi-Cal, GBI payments should not impact your WIC eligibility, as long as you continue to receive the other benefits. You will still need to report any GBI income and show proof that you are participating in a GBI program. If you receive WIC and no other means-tested public benefits, your WIC eligibility may be impacted by GBI payments.

The California legislature and the California Department of Social Services have exempted GBI payments from consideration for CalWORKS.  If you receive CalWORKs, you will still need to report the GBI income, but it should not count against your aid. You will need to show proof that you are participating in a GBI program.

General Assistance, also called General Relief, may be impacted by GBI payments. Ask your GBI program if your county has exempted payments from General Assistance determinations or is part of a state-funded pilot. General Assistance programs vary from county to county. Just because GBI payments are exempted in one county does not mean they will be exempted in another. If you move counties, you should ask the GBI program if your new county has exempted the GBI payments from their General Assistance program. You will need to report any GBI payments as income and show proof that you are participating in a GBI program.

GBI payments will likely be considered unearned income for SSI. SSI recipients must report unearned income to the Social Security Administration. After a $20 disregard, unearned income lowers an SSI payment dollar for dollar. If GBI payments are high enough that you are not eligible for a SSI monthly payment, and GBI payments last for more than twelve months, your SSI payments may be terminated, which would require you to reapply for SSI once GBI payments end. If you receive SSI based on disability, reapplying would include proving that you are still disabled. For some people, this could be very difficult and take many months to get a final decision.

If you are receiving SSI and considering participating in a GBI program, we recommend you receive individualized benefits counseling to help you fully understand the risks.

Even though CAPI is administered by counties, CAPI follows the same rules as SSI. However, unlike SSI, GBI payments may not count against CAPI benefits in some circumstances. First, If you are participating in a California-funded state GBI pilot, GBI payments should not impact your CAPI benefits. Second, GBI payments from programs that are entirely funded by state or county funds and use income as an eligibility factor for participation should also not impact CAPI payments. Ask your GBI program if either or these exceptions apply. You will need to report any GBI payments and show proof that you are participating in the GBI program. 

If neither of the two exceptions above applies, then GBI payments will be considered unearned income and will follow the same rules as SSI (see SSI section above). If you are receiving CAPI and considering participating in a GBI program, we recommend you receive individualized benefits counseling to help you fully understand the risks.

GBI payments should not count as annual income for determining eligibility for Section 8 housing (including Housing Choice Vouchers and public housing) if GBI payments end within twelve months or another public benefits program, such as CalWORKs or CalFresh, does not count the GBI payments as income. Local housing authorities may also choose not to count GBI payments towards adjusted monthly income which determines a household’s rental share; we suggest checking with the GBI program to find out if that is the case in your county. You should be prepared to report GBI income and show proof of participation in the program.

• https://www.cdss.ca.gov/inforesources/guaranteed-income-pilot-program
• https://economicsecurityproject.org/work/guaranteed-income/
• https://www.mayorsforagi.org/about
• https://basicincome.stanford.edu/
• Media coverage of BayLegal’s GBI support initiatives and related topics:
  • https://www.dailyjournal.com/articles/380409-why-guaranteed-basic-income-is-becoming-a-key-anti-poverty-strategy