As Americans grapple with rising costs for housing, food, and energy, a growing number of mayors are implementing or expanding guaranteed income programs. These initiatives, often funded by federal pandemic relief dollars, are now facing a critical deadline as those funds near expiration.
The Economic Securities Project (ESP), which has supported the creation of over 100 such programs, asserts that the current affordability crisis makes direct cash assistance even more vital. "The destruction of the social safety net paired with skyrocketing costs of healthcare and food have made the need to bring cash to communities even more urgent," said Shafeka Hashash, ESP's Director of Cash Initiatives.
These programs aim to provide financial stability, support economic mobility, and help families achieve greater economic security. ESP's recent report, "Right on Time: How Cash Helps Families Move Through Life’s Transitions," advocates for institutionalizing "no-strings-attached" cash assistance, suggesting that direct payments are most effective during periods of personal or financial hardship, such as welcoming a child, moving, or re-entering society after incarceration.
Advocates point to the COVID-19 pandemic, during which direct government checks were distributed, as a successful model of large-scale cash transfers. The ESP report draws on data from over 250 cash and guaranteed income pilots across 40 states and the District of Columbia, which proponents claim demonstrate the efficacy of direct cash transfers as a policy tool.
However, the sustainability of these programs is a growing concern. Many municipal mayors are seeking ways to continue these cash-handout experiments as the federal American Rescue Plan Act (ARPA) funds that have supported them must be obligated by the end of 2024 and fully spent by the end of 2026. In Evanston, Illinois, for example, city officials recently announced an expansion of their guaranteed income program to utilize the remaining ARPA funds.
Some state lawmakers have raised objections. State Sen. Paul Bettencourt has stated that guaranteed income programs should be unconstitutional and has called for Attorney General Ken Paxton to investigate. This pushback highlights ongoing debates about the role and legality of such programs.
Organizations like Mayors for a Guaranteed Income, led by former Stockton, California, Mayor Michael Tubbs, continue to advocate for federal funding to supplement the incomes of lower-income Americans, framing it as a strategy to combat inflation and rising costs.
In California, Economic Security California, an ESP affiliate, is working to establish state-funded guaranteed income programs. The organization recommends that local and state governments explore dedicated revenue streams from local taxes to ensure the longevity of these initiatives beyond philanthropic or federal emergency funding.