Can Direct Cash Assistance Solve Nashville’s Homelessness Crisis?
More than 16 years ago, a group of compassionate individuals came together to create The Contributor, a street newspaper driven by a dual mission: to provide critical financial support and the freedom to make their own income to those grappling with survival. Another hope was to reshape the narrative around helping the unhoused as an act of hope and dignity. While the latter goal’s success remains a subject of debate, The Contributor has undeniably placed cash directly into the hands of those in dire need. Since its inception in 2007, the impact is quantifiable:
- Since 2007, The Contributor has worked with 3,963 individuals to become Contributor Newspaper vendors.
- Our vendors have sold a total of 7,484,389 papers over 422 issues in our 16 years.
- Vendors have earned more than $20 million since the paper started.
- During the pandemic, we began our housing program, COVER. With COVER, we have housed 135 individuals with a 98% housing retention rate.
That $2 you’ve handed over for each issue is instrumental in empowering vendors to secure housing, meet basic necessities, and, perhaps most importantly, regain a sense of hope and dignity.
The question, however, looms large: Is this practice of giving direct cash assistance to the unhoused in Nashville a prudent allocation of resources? It’s a recurring question, surfacing particularly during the holiday season and over dinner conversations, especially for those engaged in homeless services. Once your affiliation with the unhoused population becomes known, questions about panhandling and the most effective use of community resources to address homelessness are bound to follow. Questions like, what should I do when someone asks me for money? Isn’t it better to donate to nonprofits directly?
When I asked Benjamin, a longtime vendor of The Contributor, the very personal question of how he spends the cash he receives from newspaper sales, he said, “I spend it on what you need to survive. I am praying for something other than a hotel room this winter because it’s extremely expensive. It’s getting up to $450 per week.”
Thankfully, a recent study conducted by the DU Center for Housing and Homelessness Research in partnership with the Denver Basic Income Project offers even more data to help guide our decisions on where to direct our support.
During the pandemic, nearly 20 cities embarked on cash assistance initiatives directly aiding those facing hardship. Denver’s coalition seized the opportunity, using COVID-related assistance to establish a basic income pilot project for the unhoused. Since its launch in 2020, over 800 participants have taken part, rendering it one of the largest randomized controlled trials in the nation of cash assistance to unhoused individuals. Recently, Denver Mayor Mike Johnston just approved $2 million in new funding to continue the pilot project.
Participants received a substantial sum of $12,000 distributed over a 12-month period, either as a lump sum or in $1,000 monthly installments. Notably, one group received only $600 in total. There are no restrictions or qualifications about how people who are unhoused spend the funds.
A preliminary report, unveiled in October 2023, shared some compelling findings. The study revealed that more participants from all groups report living in rented or owned homes, more participants from the larger payment groups report having full-time jobs, and fewer participants are sleeping outside and utilizing public health services (e.g. emergency rooms).
In an email statement to The Contributor, Mark Donovan, Founder and Executive Director of the Denver Basic Income Project, stated, “Direct cash payments provide recipients with the autonomy to address their most urgent needs and gives a cushion for unexpected expenses or emergencies, and our data thus far supports this.”
The data speaks volumes, echoing the fundamental idea that putting cash directly into the hands of those who need it most may be a transformative step in addressing homelessness, providing not just financial support but also the autonomy to chart one’s path to stability and dignity.
“Direct cash [assistance] should be the benchmark against which all interventions to fight poverty and homelessness should be measured,” says Donovan.