Hartford Foundation as part of Connecticut Urban Opportunity Collaborative submitted testimony in support of House Bill 6841

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On Thursday, February 13, the Hartford Foundation for Public Giving as part of the Connecticut Urban Opportunity Collaborative (CUOC), submitted testimony to the legislature’s Children’s Committee in support of House Bill 6841 An Act Concerning the Establishment of a Universal Basic Income Pilot Program.

The Connecticut Urban Opportunity Collaborative (CUOC) is a partnership among the Hartford Foundation, The Community Foundation for Greater New Haven, and Fairfield County’s Community Foundation. Together, CUOC is dedicated to advancing equity and promoting social and economic mobility in communities across the state.

 

In 2024, CUOC invested in UpTogether to launch a multi-regional Direct Cash Pilot Program to promote social and economic mobility while studying the impact of direct cash assistance in Connecticut. The program supports 120 leaders from New Haven, Hartford, and Bridgeport who are facing economic hardship and collaborating to build community power and improve their lives and neighborhoods. Over three years, participant households will receive monthly payments totaling $12,600 to help alleviate financial challenges and foster community improvements.

 

A growing body of evidence from hundreds of direct cash programs operating across the country demonstrates that direct cash can lead to increased food security, improved health, more stable employment and housing, and increased family incomes and savings. Most often, funds help pay for basic needs, utilities, and rent, but can also be used for paying off debt or building emergency savings, investing in education or a business, and paying for school supplies. Recognizing and trusting in people’s strengths, abilities, and self-determination also lightens the administrative burden of operating public support programs, making the use of taxpayer dollars more effective and efficient. 

 

We support this legislation to study the impact of direct cash assistance for families across five Connecticut municipalities. Currently, three privately funded direct cash programs are operating in the state: UpTogether’s pilot, The Bridge Project’s pilot, and 4-CT, collectively benefiting over 700 households. A state-led pilot would contribute to the growing evidence of the positive impacts of direct cash assistance and offer valuable insights for effective program implementation.

 

We urge the Committee to consider the following as it deliberates this bill:

 

  • While Guaranteed Basic Income (GBI) and Universal Basic Income (UBI) are often used interchangeably, it is important to note the distinction between the two. GBI provides targeted financial support to those in need, whereas UBI offers a set income to all citizens, regardless of need. Both fall under the broader category of Direct Cash Assistance, alongside other models that address specific issues (e.g., housing assistance) or populations (e.g., Baby Bonds).
  • The length of the pilot being long enough to truly support the social and economic mobility of the participants.
  • The DSS study group is informed by the direct experience of people in the pilot program.
  • The study draws on data and learning of the direct cash pilots that are currently operating in the state.