Local officials nationwide are scrambling to preserve guaranteed income programs that were initially funded with federal pandemic relief money, even as the temporary COVID-era funding source officially dries up.
Cities and counties that launched “no-strings-attached” cash payment initiatives using funds from the federal American Rescue Plan Act (ARPA) are now seeking ways to continue payments through local taxes, county budgets, and private donations.
In Evanston, officials recently expanded the city’s guaranteed income program in an effort to spend the remainder of its federal allotment before the end-of-year deadline attached to pandemic recovery funds. The city is using leftover ARPA money to provide selected households with $500 monthly payments over six months.
The program targets low-income residents who are either at least 55 years old or have young children. According to city officials, roughly 150 applications were submitted during the first week alone for just over 100 available slots.
Evanston Mayor Daniel Biss, who is also running for Congress, has openly embraced the guaranteed income model and indicated he wants to expand it nationally.
“Guaranteed income programs provide critical support to families while boosting the local economy,” Biss said after the city council approved the expansion. “We’re leading the way in Evanston, and I’m ready to fight for these programs in Congress!”
More than 100 U.S. cities have experimented with guaranteed income initiatives since 2018. Many of those programs relied heavily on ARPA funds combined with donations from nonprofit groups and corporations.
In neighboring Cook County, county commissioners approved $7.5 million in local funding to continue guaranteed income payments after the original federally funded pilot ended.
Meanwhile, Newark Mayor Ras Baraka is advocating for statewide guaranteed income policies in New Jersey following Newark’s pilot program that distributed payments to 400 low-income residents over two years using federal relief funds and corporate donations.
“The Newark Movement for Economic Equity guaranteed income pilot program definitively demonstrated that cash payments boosted financial stability and improved child outcomes,” Baraka said. “We must turn these pilots into policy across New Jersey.”
The push is also being championed by Michael Tubbs, president of Mayors for a Guaranteed Income. Tubbs helped popularize municipal cash payment programs after launching one in Stockton, California, and has argued for a nationwide guaranteed income system.
Other cities are now turning to taxpayers and private donors to sustain programs that were initially designed as emergency pandemic measures.
Officials in Boulder are actively soliciting donations to extend their “Elevate Boulder” guaranteed income project after exhausting its $3 million in ARPA funding.
In Salem, local officials praised a pilot program that provided participants with $500 monthly payments for a year using a combination of federal funds and private contributions.
Critics argue the programs create long-term dependency while shifting the financial burden onto taxpayers once federal relief money disappears.
In Texas, legal opposition has already emerged. Ken Paxton sued Harris County over a separate guaranteed income initiative, calling it an unconstitutional use of public funds. The litigation has slowed expansion efforts elsewhere in the state.
