This study investigates the mental health impacts of the Ontario Basic Income Pilot (OBIP) in the Hamilton region. Launched in 2017, OBIP was designed to test the effectiveness of a basic income model as an alternative to traditional social assistance programs, with the goal of reducing poverty and improving overall well-being. We found that basic income led recipients to experience greater income security than before, resulting in various benefits that address the constellation of stressors contributing to worsened mental health outcomes. Our study suggests that an adequately funded basic income scheme could improve mental health by addressing the cyclical interaction of conditions associated with poverty. An adequately funded basic income scheme, then, holds the potential to surpass traditional social assistance models in addressing poverty and its adverse effects on mental health. Its unconditional nature shields individuals from market failures and punitive welfare models while providing financial relief during economic shocks such as the COVID-19 pandemic.