Basic Income Pilot for Justice-Impacted Parents Launched By Students At NYU School of Law, Supported By 4-CT and CEO

25 Returning New Yorkers Receive $1,000/month for 6 Months

Panel Discussion With Justice-Impacted Participants, Students, Experts at NYU Law 

Center for Employment Opportunities Media Contact:

Claire Gross, Sr. Manager of Public Relations 

cgross@ceoworks.org | (646) 370-8292

4-CT Media Contact:

Katie Rosa-Moher, Director of Development and Communications

katie@4-ct.org | (203) 521-8499

New York, NY – April 14, 2026 – Twenty-five New York City families are receiving $1,000 per month as part of a six-month cash transfer pilot designed by New York University School of Law students to address the effect of mass incarceration on parents and children.

To carry out the pilot, the students in NYU Law’s Basic Income Lab have partnered with the Center for Employment Opportunities (CEO), the nation’s largest reentry services organization. Participants in the pilot are individuals who enrolled in CEO’s job-readiness training program and are returning to their families after a period of incarceration. The program is administered by 4-CT—an organization that specializes in designing and implementing cash transfer initiatives—as part of 4-CT’s ongoing collaboration with the NYU Law Basic Income Lab.

Today, the NYU Law Basic Income Lab will host a panel from 1pm to 2pm at which the students who designed the pilot, participants in the program, and faculty will discuss the real-world impacts of cash transfers. 

Now in its second year, the collaboration between the NYU Law Basic Income Lab and 4-CT helps students examine how direct cash transfers affect families facing hardship. Previously, the NYU Law Basic Income Lab and 4-CT worked together to launch a cash transfer program providing $6,000 over six months to 25 housing-insecure families. The partnership with CEO allows the NYU Law Basic Income Lab and 4-CT to expand their cash transfer work.

Research demonstrates that cash transfers improve adult mental health, parenting, family dynamics, and child wellbeing. Participating parents report using funds for essentials like diapers and for rebuilding relationships through shared activities and meals.

“Simply put: cash assistance works. Time and time again, data shows that the sooner we can connect people to cash upon reentry, the better the outcomes for the individual, their family and the community,” said Sam Schaeffer, Chief Executive Officer of CEO. “We are so excited to partner with 4-CT and the NYU Law Basic Income Lab to offer parents the opportunity to reconnect with their families and be the provider they’ve always wanted to be.” 

Recognizing the acute challenges faced by parents returning from prison, the pilot supports individuals who were incarcerated within the last 12 months and have at least one child under the age of 18 to increase their financial security and reduce economic stress. 4-CT, through private philanthropy, funded the pilot, which runs from February to July 2026.

“Families facing crisis or instability know best what they need to move forward. Direct cash transfers offer flexibility and immediate relief from economic pressures when timing and autonomy matter most,” said Sarah Blanton, Chief Executive Officer of 4-CT and Adjunct Professor of Law at NYU Law. “On behalf of 4-CT and the NYU Basic Income Lab, we are thrilled to partner with CEO to reduce social and economic barriers for formerly incarcerated individuals and their families.”

“As a dad, the most important thing I can do is bond with my children and you can't bond when you're constantly stressed about how to be a provider,” said pilot participant, Juan Carlos. “It's important to provide for my kids but I also need to really know them, take the time to know their favorite color, whether they like spiderman, what they like about school. Having this money each month helps me provide for them, manage my time better and really show up for them. There's nothing more important.”

For the many returning New Yorkers, providing for their children is their first priority upon reentry. Often, due to economic barriers such as persistent employment discrimination against people with criminal records, parents are unable to sustain the  financial support they wish to offer.

  • An estimated 60% of people incarcerated in New York State are parents. 
  •  1 in 5 adolescents in New York City have had a parent incarcerated at some point in their life. 
  • Financial hardship contributes to the negative health outcomes of families impacted by incarceration.

Solid evidence shows that cash assistance is key to successful reentry. In 2020, CEO raised $24 million to create the Returning Citizen Stimulus (RCS), a direct cash program for people coming home from prison. In partnership with 32 nonprofits, CEO distributed funds to over 10,000 people making it the largest reentry cash program in history.  Through RCS, formerly incarcerated individuals received up to $2,750 in three installments over two months. Based on an independent evaluation from MDRC, participants primarily used funds for family related expenses such as school supplies for children, childcare or child support payments, and to help other family members with their expenses.  

RCS results showed improved public safety outcomes. Cash payments directly reduced parole violations six months post-release by 41%. These outcomes inspired reentry cash legislation in New York state with the introduction of the Reentry Assistance Bill (S6222/A6990). The bill would provide every person leaving incarceration $425 a month for up to six months. 

4-CT has also seen tremendous results from its reentry programs, including the first guaranteed income program in Connecticut. Approximately 97% of participants maintained or improved their employment situation, and 52% reported an increase in their monthly earned income during the pilot period. In addition, 88% maintained or improved their housing situation during the pilot. Nearly all of the individuals who received cash assistance believe the program was effective at helping them avoid re-arrest or re-incarceration..

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About the Center for Employment Opportunities

The Center for Employment Opportunities (CEO) provides immediate, effective, and comprehensive employment services exclusively to people recently released from incarceration. CEO currently operates in 30 cities in twelve states and is dedicated to ensuring justice-impacted people have opportunities to achieve socioeconomic mobility. For more information, visit ceoworks.org.

About 4-CT 

4-CT provides cash transfers to people who are experiencing a crisis or struggling to cover basic needs like food, transportation and housing. 4-CT nimbly establishes partnerships with community organizations, hospitals, and state and local governments to reach people who need support at the moment they need it. Since 2020, 4-CT has distributed more than $8.5 million in cash transfers, impacting more than 43,000 individuals – often survivors of violence, people returning home from incarceration, or refugees and their families. For more information, visit 4-ct.org.

About NYU Law Basic Income Lab Seminar  

The NYU Law Basic Income Lab, introduced in Spring 2025, is a seminar in which students design and implement cash transfer programs while studying the relationship between basic income and economic mobility. The seminar holds a dedicated fund at 4-CT from which funds are distributed to recipients. Each semester, the students craft their own basic income program, identify a nonprofit partner that provides services to populations that meet program criteria, and work through the legal and practical challenges of program implementation. The seminar is co-taught by Daniel Hemel, the John S. R. Shad Professor of Law at NYU Law, and Sarah Blanton, Chief Executive Officer of 4-CT and Adjunct Professor of Law at NYU Law.