Corporations raised $16 million to oppose Oregon’s universal basic income plan. They won.

iStock; Rebecca Zisser/BI

Oregon’s universal basic income measure failed, with 78.8% of voters opposing the policy.The measure proposed giving $1,600 annually to state residents, funded by a corporate tax increase.Basic income programs have been tried across the US as an approach to poverty reduction.

Oregon’s effort to institute a statewide universal basic income failed on November 5. With 73% of the total votes counted, The Associated Press reported that 78.8% of those voters opposed the policy.

Measure 118 — also known as the Oregon Rebate — planned to give $1,600 annually to all residents who spend more than 200 days in the state. If it had passed, Oregon would have been the first state to implement a UBI policy giving all residents no-strings-attached cash. Alaska also has a program that resembles basic income, but it’s structured differently than Oregon’s proposal.

To fund the initiative, Oregon planned to increase the corporate minimum tax rate by 3% on in-state sales exceeding $25 million.

Prior to November 5, the policy was unpopular among both Republicans and Democrats, many of whom said the rebate could lead to increased prices for consumer goods and slower job growth. Major corporations also spent millions to oppose the measure.

The opposition movement to Measure 118 raised over $16 million — more than 26 times what the Oregon Rebate support PAC raised.

The measure failure comes as basic income programs across the country gain popularity as an approach to poverty reduction. Advocates for Oregon’s measure hoped that cash assistance would create a “fairer and more just economy” for state residents.

Oregon’s UBI policy failed, but basic income is still gaining national momentum

Business Insider has previously reported on basic income research, and state-level efforts to create lasting cash assistance programs. Oregon’s ballot measure resembles basic income experiments in other cities and countries.

Over 100 guaranteed basic income pilots have launched across the US, and participants told BI they used the money to pay for housing, groceries, childcare, transportation, and medical bills. These pilot programs are often funded through philanthropy, local governments, or private donors. Some states, like California and New Mexico, are also making efforts to incorporate basic income into state policy.

But GBI differs slightly from UBI. Although the guaranteed basic income pilots offer no-strings-attached cash, the money is limited for a set time period and selected participants, many of whom are low-income and fit specific demographics such as single parents, artists, or students.

Universal basic income would give everyone ongoing cash payments, regardless of their income level. A UBI program hasn’t been successfully launched in the US.

During his 2020 presidential run, Democratic Candidate Andrew Yang pitched the Freedom Dividend, a federal basic income policy that would give $1,000 monthly to every American over the age of 18.

The Alaska Permanent Fund, which began in the 1970s, is a model similar to universal basic income. It gives state residents annual payments (which were $1,312 per person in 2022) funded through the state’s oil revenue.

Some tech leaders have also suggested that cash assistance programs will become more necessary as artificial intelligence disrupts the job market.

Still, any program like the Oregon Rebate would require funding and any major tax changes would need to be approved by voters.