Advocates for guaranteed income programs are seeking to establish these cash assistance initiatives as permanent government policy as federal COVID-19 relief funds, which have financed many pilot programs, near their spending deadlines.

Researchers from the Economic Security Project (ESP) have put forth arguments for institutionalizing "no-strings-attached" cash assistance. Their report, "Right on Time: How Cash Helps Families Move Through Life’s Transitions," highlights data from over 250 cash and guaranteed-income pilots across the U.S. The authors contend that direct cash transfers are a "legitimate policy tool," drawing parallels to the rapid distribution of government checks during the COVID-19 pandemic.

As federal COVID-19 relief funds, including those from the American Rescue Plan Act (ARPA), are set to expire, cities nationwide are facing financial challenges in sustaining these programs. Local governments were required to obligate ARPA funds by December 31, 2024, with most needing to be spent by December 31, 2026. In Evanston, Illinois, for example, officials recently announced an expansion of its guaranteed income program to utilize remaining ARPA funds before the deadline.

Since 2018, over 100 U.S. municipalities have launched basic income-style pilot programs, many initially funded by private philanthropy and federal stimulus. The dwindling financial resources are now prompting local officials to explore alternative, permanent funding mechanisms.

Shifting Strategy to Life Transitions

Instead of advocating for immediate, widespread cash handouts, the ESP report suggests focusing direct payments on specific life events. The researchers argue that cash assistance is most effective during periods of personal or financial hardship, such as having a child, relocating housing, or reentering society after incarceration. These "moments of transition" allow individuals time to make strategic decisions rather than rushed ones.

The report also suggests that tying cash assistance to major life changes could increase public acceptance. The authors note that programs like Social Security, unemployment insurance, and paid family and medical leave are accepted because they are seen as earned or triggered by specific disruptions.

Mayors for a Guaranteed Income, an organization led by former Stockton, California, Mayor Michael Tubbs, is among those advocating for direct payments. Tubbs has argued that federal funds could supplement the income of lower-income Americans to help them manage rising costs of living.

Embedding Programs into Existing Structures

ESP proposes that lawmakers integrate cash payments into existing social safety net programs, rather than attempting to launch entirely new, open-ended initiatives. The report suggests that many transitional needs are already addressed by public funds allocated to programs such as Temporary Assistance for Needy Families (TANF), child welfare, workforce development, higher education access, and disaster relief. These existing budgets, the authors argue, could be repurposed to support direct cash payments.

Economic Security California, an affiliate of ESP, is actively working to establish state-funded guaranteed income programs, with California currently leading the nation in pilot initiatives. ESP recommends that local and state governments identify dedicated revenue streams, potentially through local taxes, to sustain these efforts beyond donor funding.

However, not all officials support these programs. State Sen. Paul Bettencourt has stated that a guaranteed income program should be unconstitutional and has called for Attorney General Ken Paxton to review the legality of such initiatives.