Basic income would trade off with food stamps and Medicaid---means-tested caps are low
Roselyn Miller et al 21 (senior policy analyst, member of the Better Life Lab team, where she tracked policies that help families and individuals live balanced and healthy lives—paid family leave, high-quality and affordable care, workforce training, and best practices for the evolving workplace, worked to coordinate community-based programs with local government in California), “Guaranteed Income and the Safety Net,” 09/03/2021, New America CA, https://www.newamerica.org/ca/reports/guaranteed-income-and-the-safety-net/
“Means-tested” safety net benefits are those that determine eligibility based on recipients’ income or other available resources. Guaranteed income policies can negatively impact some recipients’ eligibility for these types of programs when the added income raises them above benefit qualification thresholds. A 2020 article covering the Magnolia Mothers Trust documented this effect:
“Though the payments have made her life more comfortable, [one recipient] said there are some downsides. An increase of $12,000 a year to some women’s incomes could mean that they no longer qualify for food stamps or Medicaid. ‘In reality the caps are so low that the moment you get something like Magnolia Mother’s Trust, it makes all of those resources that sometimes are needed unavailable,’ she said. [The recipient] said she has not been hurt by the payments, but other women in the program have told her that it’s made their lives more difficult. ‘Some mentioned that they would rather not have the $1,000 because of the headache,’ she said. [Aisha] Nyandoro said there is a reduction in benefits for some mothers, averaging $300 to $400 each month, because of the ‘punitive aspect of the social safety net.’”