The Palm Springs UBI Pilot Program at DAP Health

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Clearing the Air: DAP Health's Role in the Palm Springs UBI Pilot Program

From invitation to oversight, DAP Health addresses misunderstandings about its involvement in—and commitment to the success of—the Universal Basic Income (UBI) initiative.

Collaborating with the City of Palm Springs and Queer Works

In October 2021, the Palm Springs City Council invited DAP Health to participate in a Universal Basic Income (UBI) pilot program aimed at addressing local poverty, which is recognized as a critical social driver of health impacting health outcomes.

Why DAP Health? At the beginning of building a local UBI pilot program, the state of California announced it had $35 million in funding available for organizations with new ideas. The local pilot program needed a leading nonprofit like DAP Health, with its 40-year history and pristine reputation for successfully managing state funds. Those funds, however, proved elusive, and when they did not come to fruition, the pilot program no longer required DAP Health to be in the lead position, allowing the city of Palm Springs to grant local funding directly to Queer Works to execute the program. This collaboration marked the beginning of a pioneering initiative in Palm Springs, involving the city and Queer Works, a small, trans-led nonprofit organization.

Why Queer Works? As a trans-led organization, Queer Works had been building a track record in leadership and advocacy for marginalized individuals. The city had been in discussions with Queer Works, and introduced Queer Works to DAP Health, suggesting a collaboration. By aligning with Queer Works, the city and DAP Health hoped to elevate these marginalized voices by supporting them in leadership roles. For the past five years, DAP Health has made a mindful decision to always have a seat at the table when collaborating with local nonprofits of varying sizes, without requiring that seat to be at the head of the table. This partnership was seen as a way to empower a smaller nonprofit by supporting its leadership position in managing an important program.

UBI Execution Phase: Queer Works Receives Funds from the City of Palm Springs

In March 2022, the city of Palm Springs committed $200,000 to launch the UBI pilot program. Queer Works took the lead in implementing the program, leveraging its understanding of the community's needs. The program aimed to provide 30 qualifying Palm Springs residents with an $800 monthly payment for 18 months, primarily focusing on transgender and nonbinary individuals.

The application and design phase spanned from April to October 2022. During this period, Queer Works and DAP Health worked closely with a consultant, which was brought on board to help draft and submit the proposal to the city of Palm Springs, decide on sample size and monthly allocation, and strategize regarding protecting participants' benefits. This collaborative effort culminated in the successful launch of the program in early 2023.

During the early stages, DAP Health offered to be the financial manager of the program, but the city of Palm Springs and Queer Works reached a separate agreement without DAP Health's involvement. Nevertheless, DAP Health continued to advocate for the program, providing services to participants who needed health care access. DAP had no insight into either the prior financial administration of the UBI program or Queer Works’ internal use of funds.

DAP Health’s Recommendation to Queer Works to Track Payments to Participants

On October 5, 2022, Queer Works executed an amendment to its original MOU with the city of Palm Springs. DAP Health was not included in the amendment and was not a signatory. While DAP Health’s official role in managing the program ended with this amended MOU, on February 20, 2023, DAP Health provided Queer Works with information about Paycom’s “Vault Card” as a potential solution for managing participant monthly payments.

How It Would Have Worked

The Vault Card would have worked like a debit card. DAP Health would have added the UBI participants to its payroll processing system. The participants would have been set up on a monthly payment cycle frequency, and their $800 would have loaded monthly to a debit card. Participants could then use an ATM, a vendor, or retail just like any Visa debit card. Their funds would be withdrawn as used, and any unused funds would remain on the card. Should a participant no longer be eligible for the program, Paycom could stop funding and deactivate their card.

No other communication was received from Queer Works, no wires ever came to DAP Health, and the organization later learned Queer Works had chosen to manage participant payments internally. Queer Works received the funding directly from the city of Palm Springs. DAP Health's role remained supportive, offering health care and social services to participants. The initial participants began receiving their monthly stipends, and early data indicated positive impacts on participants' health and well-being.

The City of Palm Springs Takes Program Back from Queer Works, DAP Health Assumes Responsibility for the Program

On July 12, 2024, DAP Health assumed responsibility for the UBI pilot program. This transition was necessitated by concerns over the management of the program and to ensure its success and stability. DAP Health stepped in without requesting additional taxpayer funds, committing to managing the program and covering additional costs.

DAP Health confirmed that $30,000 in program funding was available when it assumed responsibility. DAP Health is awaiting the findings of the Riverside County District Attorney to determine if any additional funds remain to complete the program but is committed to funding the completion using its own unrestricted general operating funds without asking for additional taxpayer dollars. Currently, seven of the 14 participants are receiving health care or social services at DAP Health. This transition underscores DAP Health's belief in the UBI program as a potential solution to local poverty and its commitment to community trust and open communication.

DAP Health continues to meet with participants to listen and learn, ensuring the program runs smoothly. The organization is funding the completion of the program and working closely with Health Assessment and Research for Communities (HARC) to track the program's impact.

DAP Health is Listening and Aims to Improve Participant Experience

Participants in the program have shared their frustrations about how it was initially managed. This only strengthens DAP Health’s resolve to complete this pilot program successfully. DAP Health is led by the communities it serves. Their voices guide it, and their experiences shape its actions. DAP Health remains committed to ensuring that every participant receives the support and respect they deserve as it works to improve and complete this program.

DAP Health invited the 14 remaining program participants to a July 29 virtual town hall so it could listen and learn about their experiences. Six participants accepted the invitation, and two more chose to meet in person the following day. Through these discussions, DAP Health realized there were early signs that the UBI program was not working as intended. Participants reported delayed payments, unclear communication, and financial hardship due to unfulfilled promises.

Going forward, DAP Health is committed to improving the participant experience by offering monthly group conversations, providing direct access to our chief transformation officer for real-time support, and reviewing stipend schedules to ensure consistency. These steps aim to address past issues and ensure better communication and support for all participants moving forward.

We believe DAP Health's involvement in the Palm Springs UBI pilot program highlights its dedication to health equity, transparency, and community empowerment. Through strategic collaboration and unwavering commitment, the organization aims to create a lasting impact on the lives of this program's participants and the broader Palm Springs community.

For more information about the UBI program and DAP Health’s participation in it, contact DAP Health Chief of Brand Marketing Steven Henke at [email protected]. 

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