Rebuilding with Dignity: Guaranteed Income for Workers - by Luz Castro

In the wake of the January fires, workers in Los Angeles have lost their homes, their livelihoods, and are struggling to rebuild in a landscape of skyrocketing costs. Without a safety net, they face immense financial insecurity. Many of these workers, especially undocumented immigrants, are excluded from federal aid programs due to their immigration status, leaving them even more vulnerable as they try to recover and rebuild. As they face uncertainty, how do we rebuild the hope, opportunity, and vital cultural and economic fabric that our communities rely on? The answer – although not simple – lies in the opportunity to advance guaranteed income programs, a critical tool that could provide financial stability to the very workers who have been most vulnerable to climate disasters and economic instability in our city. 

Since 2019, a wave of promising guaranteed income pilots have emerged across the United States, building the case for expanding these programs to support economic security for community members and inform policies on the importance of unconditional cash assistance. There is already substantial evidence of the program’s successes, including improving health outcomes, reducing housing cost burdens, stimulating entrepreneurship, and increasing the well-being, belonging and self-worth of participants.

A study on the Ulster County Project Resilience GBI program in New York, for instance, showed that providing $500 in no-strings-attached cash assistance for 12 months to 100 Ulster County Households earning less than 80% of the area media income ($46,900 per household) led to improved financial health, an increased sense of self, and enhanced quality of life. Similarly, an analysis of the Stockton Economic Empowerment Demonstration (SEED) program in the city of Stockton in California, showed that providing 125 residents with $500 per month for 24 months, reduced  income volatility, increased positive health outcomes such as less depression and anxiety for recipients, and alleviated financial scarcity by the creation of new opportunities for self-determination. The Cambridge Recurring Income for Success & Empowerment (RISE) found that single caregivers who received $500 in monthly cash payments for 18 months experienced improved financial health, increased time spent with family, and greater security in their access to housing and food.

These case studies reveal two key lessons: guaranteed income programs help individuals meet essential needs and contribute to economic mobility. Implementing a guaranteed income program for workers impacted by the Los Angeles fires would replicate those same life-changing outcomes. These programs provide a great framework to expand guaranteed income to support workers that have been disproportionately impacted by climate disasters and have been left behind in the initial conversations around recovery efforts. 

Cash relief in response to climate disasters in California is not new – governments and organizations have successfully implemented similar initiatives in the past. In response to the 2017 North Bay Wildfires, Redwood Credit Union, in partnership with state Sen. Mike McGuire and Sonoma Media Investments, established the 2017 North Bay Fire Relief Fund to assist impacted residents. Likewise, in response to the critical need during the Los Angeles fires, Inclusive Action for the City launched our Open Air Worker Relief Fund, distributing one-time cash relief in the amount of $500 to outdoor workers. To qualify, workers were required to be at least 18 years old, live or work in areas directly impacted by the fires, primarily work outdoors (e.g., as a street vendor, landscaper, recycler), and have experienced a loss of income, property, or belongings due to the fires. Similarly, Alliance for a Better Community also launched the Fuerza Fund to provide a $500 cash relief to essential workers like caregivers, housekeepers, landscapers, and hourly and part-time service workers serving homes and businesses in the areas impacted by the Los Angeles fires. These examples reinforce the growing recognition that direct cash relief in the aftermath of climate disaster can serve as a flexible safety net for impacted workers and a starting tool in achieving long term recovery efforts.   

Given the success of guaranteed income programs across the United States and relief funds in California, local and state governments – in partnership with philanthropy and community based organizations – should leverage the model to support workers impacted by climate change and the Los Angeles fires. Doing so would increase financial security, reduce the stressors of poverty, enforce a stronger sense of agency for workers and prevent them from falling into poverty altogether. 

Many fire-impacted workers are undocumented and do not qualify for unemployment insurance, FEMA support and other types of federal relief programs that US Citizens have access to. As such, any program that government entities pursue should:

• Be available regardless of immigration status;
• Prioritize vulnerable workers;
• Provide, at minimum, 12-24 months of support to allow recovery and stability;
• Have no strings attached;
• Have no work requirements; 
• Require minimal documentation.

In addition, the guaranteed income cash assistance should supplement and not replace any other disaster relief support. Local governments should also connect recipients to other necessary assistance like food programs, legal services,  and financial literacy to help workers rebuild security for themselves. 

Community Insights and Findings 

From conversations with community members and street vendors, landscapers, and recyclers, who were recipients of the Open Air Worker Fund, Inclusive Action quickly learned that open air workers face significant challenges in accessing traditional recovery aid and support, if they were eligible at all. 

We received thousands of applications – and the majority of the applicants were immigrant, low-income workers. In terms of age distribution, 8% were ages 18-24, 19% were 25-34, 27% were 35-44, 22% were 45-54 16% were 55-64 and 8% were 65 and older. Out of the 171 surveys collected to date, 76.6% of workers noted making less than $44,000, Los Angeles County’s per capita annual income. Additionally, 40.9% of workers also noted having had experience of food insecurity, 34.5% housing insecurity or houselessness, 15.8% identifying as a person with a disability, and 14% have been impacted by the justice system. 

Many respondents shared concerns about income loss, lack of work, high living costs, and overdue rent and utility bills, all worsened by wildfires and the Trump administration's immigration policies. Some workers lost their homes, had work equipment destroyed, or mentioned struggles as single parents. Many expressed feelings of worthlessness due to unemployment and anxiety over supporting their families.

Older adults worried about their age, health, and access to quality care. Workers reported falling behind on rent for months, accumulating medical debt, or avoiding doctors due to high costs. These financial struggles have also led to poor credit, making it harder to secure housing and job opportunities. To meet the needs of displaced and excluded workers, we need urgent, long-term support in areas such as cash assistance, legal protection, health, food, and housing.

The Path Forward 

While relief funds from community based organizations offer immediate aid, long-term investments in guaranteed income programs are essential to ensure workers – many of whom are immigrants, business owners, and heads of households – have the stability they need to recover. Even before the fires, many of these workers were already living in poverty, struggling paycheck to paycheck with little to no financial cushion. Now, the devastation has only worsened their economic insecurity, leaving them with even fewer options for stability.

This is especially critical as many enter their golden years without the possibility of retirement or the opportunity to build wealth. Without financial security, they remain vulnerable to economic shocks, unable to recover, save, or plan for a stable dignified future. A guaranteed income program could provide both immediate and long-term relief, preventing families from falling deeper into financial hardship and breaking the cycle of generational instability.

Disasters like the Los Angeles wildfires and windstorms can set a precedent for how we respond to and support the communities that need it most, ensuring that there’s an equitable support system for everyone. As we transition from fire response to recovery and rebuilding, it is critical that we assess the full impact of these crises and design solutions centered on the needs of our most vulnerable community members. Without economic stability, workers impacted by the fires face daily uncertainty about meeting basic needs. Guaranteed income can provide a pathway to security and create a renewed sense of hope for our community.

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 Luz Castro is Associate Director of Policy for Inclusive Action for the City.