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Marshall Islands pays every resident citizen a basic income

Marshall Islands pays every resident citizen a basic income

Money Moves

The $200 quarterly payment comes from a US-linked trust fund, not taxes, and can be collected in cryptocurrency

3 days ago: The Economist profiles the program

Overview

Updated 1 hour ago

On 26 November 2025, the Marshall Islands started paying every resident citizen about $200 every three months. Children included. No means test, no work requirement. The money comes from the investment returns of a trust fund tied to the country's compact with the United States, not from taxes raised at home.

The program is called Enra, and at full rollout it costs about 8.1% of GDP. It is the first nationwide basic income to offer a cryptocurrency payout option. It is also a live test of a harder question: whether a small, aid-dependent state can convert an external windfall into a permanent citizen entitlement without draining the fund that pays for it.

Why it matters

A country of 42,000 is testing whether a trust fund can pay citizens directly instead of funding services.

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Key Indicators

$200
Quarterly payment per citizen
Paid to every resident citizen, including children; the amount varies with enrolment because a fixed pot is split equally.
$800
Annual value per citizen
Four quarterly payments at the $200 level.
8.1%
Cost as share of GDP at full rollout
International Monetary Fund estimate for Enra alone; a separate outer-island program adds about 6% of GDP.
41,000+
People registered or listed as eligible
As of May 2026, against a national population of roughly 42,000.
$1.7B
Compact Trust Fund net value
Reached in February 2026; Enra draws no more than 4% of the fund's principal annually.

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People Involved

Hilda Heine
Hilda Heine
President of the Marshall Islands
In office; Enra launched under her administration
DP
David Paul
Finance Minister
Overseeing Enra disbursements and budget requests

Organizations Involved

MF
Ministry of Finance, Banking and Postal Services
National finance ministry
Administers Enra registration and disbursement

The ministry runs the enrolment campaign, verifies residency and pays out Enra quarterly.
International Monetary Fund
International Monetary Fund
International financial institution
Has warned Enra may crowd out other spending

The fund backs stronger social protection but questions whether a permanent 8.1%-of-GDP transfer is affordable.

Timeline

2023-20 October 2026

8 events Latest: 3 days ago
Tap a bar to jump to that date

  1. The Economist profiles the program

    Latest Report

    Coverage frames Enra as a US-funded basic income experiment in a country of 42,000.

  2. Three quarterly distributions completed

    Program milestone

    Majuro retailers report spending surges right after each payout; longer-term effects remain unmeasured.

  3. Enrolment passes 41,000 as eligible list grows

    Enrolment

    Registered or eligible people exceed 41,000, close to the whole population.

  4. World Bank grant restores $200 payment

    Finance

    A $3.2 million grant tops up the fiscal year's final payments after one fell to $160.

  5. Trust fund net value reaches $1.7 billion

    Finance

    The fund backing Enra grows to $1.7 billion in net value.

  6. Enra begins paying every resident citizen

    Launch

    First quarterly payments of about $200 go out, with bank, cheque and crypto options.

  7. More than 33,000 register for Enra

    Enrolment

    Registration reaches 33,000-plus before the first payment, the largest national outreach the country has run.

  8. Compact renewal adds $700 million to trust fund

    Agreement

    The renewed Compact of Free Association extends trust fund arrangements to 2043 and increases the fund's capital.

Scenarios

1

Enra keeps paying $200 a quarter through fiscal 2027

Likely Resolves by Q3 2027

Discussed by: Marshall Islands Ministry of Finance budget proposal

The government has proposed lifting Enra's annual appropriation from about $27 million to $32.5 million for the next fiscal year, which would hold the quarterly payment at $200 if trust fund returns stay steady. Approval depends on the Nitijela and on Compact money arriving on schedule.

2

IMF pressure trims Enra toward targeted payments

Possible Resolves by End of 2028

Discussed by: International Monetary Fund

The IMF has said a permanent transfer above 8% of GDP risks crowding out infrastructure and climate spending, and recommends targeting. If trust fund returns disappoint or other programs expand, the government could introduce a means test or a smaller universal amount and redirect the savings.

3

Trust fund returns slip and quarterly payments shrink

Possible Resolves by Q2 2028

Discussed by: International Monetary Fund and the Ministry of Finance

Enra is capped at 4% of the trust fund's principal each year. A weak investment year, a larger-than-expected eligible list, or a bigger draw for outer-island infrastructure would push the per-person amount down. That already happened once: the second payment fell to $160 as enrolment outran the pot, before a World Bank grant restored it.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1982–present

Alaska Permanent Fund Dividend (1982–present)

Alaska set aside oil royalties in a permanent fund and began paying every eligible resident an annual dividend from the investment earnings. The payment is universal, has no work requirement, and varies with fund performance.

Then

The dividend became a fixed feature of Alaska politics and household budgets.

Now

It created a durable political constituency for protecting the fund's principal, and it made the size of the annual check a recurring budget fight.

Why this matters now

Enra uses the same structure: a publicly held fund, earnings paid out per person, a cap on how much principal can be spent. Alaska shows the model can survive for decades, and that the payout amount becomes the contested variable.

2010

Iran's cash transfer replacing fuel subsidies (2010)

Iran replaced broad fuel and food subsidies with monthly cash deposits to bank accounts for most citizens, aiming to compensate households for higher energy prices while cutting wasteful consumption.

Then

Payments reached most of the population quickly, but sanctions and inflation eroded their real value.

Now

The program persisted in modified form, and its purchasing power became a recurring political issue.

Why this matters now

It is the closest large-scale precedent for universal cash financed by removing an implicit subsidy. The IMF's warning that Enra could push prices up in a small, import-dependent economy echoes the Iranian experience.

2008–2009

Namibia's Basic Income Grant pilot (2008–2009)

A village of roughly 1,000 people in Otjivero received a small monthly grant for two years, paid to everyone regardless of age or income, funded by donors.

Then

Reports described reduced hunger and higher school attendance, along with more small trading activity.

Now

The pilot was not scaled nationally; Namibia instead expanded targeted grants for children, the elderly and people with disabilities.

Why this matters now

It sets the baseline expectation for what cash does in a poor, dispersed population: visible local effects on consumption, but no automatic path from a pilot to a permanent national program. The Marshall Islands skipped the pilot stage.

Sources

(6)
The Economist Lowy Institute Newsroom The Guardian Ministry of Finance, Banking and Postal Services RNZ