Researchers from the Center for Homelessness, Housing, and Health Equity at USC recently shared a report on a six-month study. They’re looking into how giving money and support affects 103 homeless people in LA County and the SF Bay Area.

The early findings from the Miracle Money study show that folks getting $750 a month were less likely to stay without shelter. They also got closer to covering all their basic needs compared to those using regular homeless services.

Miracle Money

Miracle Messages, a non-profit, is running this study. They’re known for helping homeless people rebuild their friendships and money stability. This study is a bigger version of an earlier program that worked well in helping people exit homelessness and meet their basic needs.

The goal of this one-year study is to see if the good results from the smaller program still hold up when more people are involved. They’re checking this against a group not getting the extra support.

“One of the aims is to scientifically examine the impact that reducing financial and relational poverty can have on creating long-term solutions to homelessness,” the researchers explain. “People have different needs, and we’re empowering them to focus on what is going to help them individually.”

Financial relief

The report gives details about what happened after six months for the first 69 people in the Miracle Money study who got a monthly income. It breaks down how they used the money and shows a big change in the time they spent without shelter. At the beginning of the study, 30% of the time was spent unsheltered, but by the halfway point, it dropped to less than 12%.

The report also compares how the folks who got at least six payments are doing compared to 86 people in the control group who are using regular homeless services.

“Poverty is poverty, but relational poverty is also poverty,” the authors explain. “A unique aspect of Miracle Money is that in addition to addressing financial insecurity through the monthly payments, it also focuses on the lack of connection and ‘otherizing’ that people experiencing homelessness often face, which makes exiting homelessness all the more difficult.”

In the Miracle Money program, people getting regular income payments are matched with a volunteer “phone buddy” from the community. These buddies give social support with weekly phone calls and text messages. This part of the study helps look into different aspects of homelessness, both physical and social, alongside housing insecurity.