New York University has announced a $3.5 million grant from Twitter and Square CEO Jack Dorsey in support of efforts to study the impact of cash-transfer policies such as a universal basic income on American families, communities, and the economy.

Made through Dorsey's #startsmall LLC, the grant will support NYU's Cash Transfer Lab, which will use the funds to study the impacts of annual payments to state residents from the Alaska Permanent Fund Dividend — a program that closely resembles universal basic income proposals. To that end, researchers will review more than three decades of data from the state's vital registries, school attendance records, test scores, insurance claims, and other statistics to analyze the impact of the annual payments, which range from $1,000 to $2,000, depending on the performance of the fund. Dorsey's previous support  for universal basic income projects includes grants of $3 million and $15 million to Mayors for a Guaranteed Income, $5 million and $2 million to Humanity Forward, $5 million for One Family Foundation, and $15 million to the Open Research Income Project.

"Many believe that a universal basic income is a sound policy idea," said professor of sociology Sarah K. Cowan, founder and executive director of the Cash Transfer Lab. "But we simply do not know how such a massive transfer of wealth would change America. This work will offer insights into how such programs affect not only individuals' economic situations, but also what impact they may have on education, crime, health, family life, and civic engagement — effects that are potentially felt by broader communities."