Mayors want to keep handing out free cash after federal funds dried up
Several mayors across the United States are scrambling to keep "no-strings-attached" cash programs alive as the federal pandemic relief funding that triggered the trend officially dries up.
In the Chicago suburb of Evanston, Illinois, officials recently announced an expansion of the city's guaranteed income program to burn through the remainder of its federal allotments. The program originally launched as a pilot funded by the American Rescue Plan Act (ARPA). Under federal law, these pandemic recovery funds had to be legally obligated by the end of 2024 and must be fully spent by the end of December.
Evanston held a series of registration sessions across the city for its Guaranteed Income Program as officials race to distribute $300,000 before the expiration deadline. The city received roughly 150 applications during the first week of registration alone. Those applications will be entered into a lottery to select 102 low-income families.
The expanded program will provide $500 monthly payments to the selected households over the next six months using the leftover pandemic funds. To be eligible for the lottery, residents must live at or below 185% of the federal poverty line and be either 55 years or older or have a child in second grade or younger.
Evanston is one of more than 100 U.S. cities that have launched universal basic income pilots since 2018 to address poverty. While many of these initial experiments relied on a blend of private donations and federal ARPA money, those federal accounts are hitting zero. The looming shortfall is driving local officials to find alternative avenues to make the cash handouts permanent—similar to recent budget maneuvers in neighboring Cook County, Illinois.
Cook County, the second-largest county in the U.S., established a subsequent phase of its guaranteed basic income program after the conclusion of its initial 2022 pilot. To sustain the initiative without federal aid, the Cook County Board of Commissioners approved $7.5 million for guaranteed income within its local county budget, signaling a shift toward long-term local funding.
Evanston Mayor Daniel Biss, who won the Democratic primary for Illinois' 9th Congressional District and is running in the general election, indicated he wants to fight for the handouts at the federal level if elected to the House of Representatives.
"Guaranteed income programs provide critical support to families while boosting the local economy," Biss wrote in a social media post after the Evanston City Council voted to expand the program. "We’re leading the way in Evanston, and I’m ready to fight for these programs in Congress!"
Biss is not the only local executive attempting to turn temporary pilots into permanent policy.
In Newark, New Jersey, Mayor Ras Baraka is pushing for the state government to adopt similar measures across the Garden State.
"The Newark Movement for Economic Equity (NMEE) guaranteed income pilot program definitively demonstrated that cash payments boosted financial stability and improved child outcomes," Baraka said during the launch of a new advocacy coalition. "I am proud that our work in Newark continues to serve as a model to inform statewide efforts for economic mobility. We must turn these pilots into policy across New Jersey."
WHAT THE FIRST FEDERAL CHALLENGE TO A LOCAL REPARATIONS PROGRAM MEANS FOR OTHER CITIES
Launched by Baraka in partnership with the advocacy group Mayors for a Guaranteed Income, the Newark pilot provided 400 low-income residents with $6,000 per year over a two-year period, pulling from a mix of ARPA funds and corporate donations.
The newly formed New Jersey Cash Alliance coalition is now actively lobbying lawmakers in Trenton for state-backed cash policies to support families. The coalition includes Mayors for a Guaranteed Income President Michael D. Tubbs, who has publicly maintained that the federal government should implement a nationwide guaranteed income program.
Tubbs, the former mayor of Stockton, California, popularized the municipal cash-handout trend after starting a pilot program in his own city. Tubbs argues that regular cash infusions are necessary to help low-income Americans stay afloat amid high costs for basic expenses like rent, groceries, and gasoline.
In Salem, Massachusetts, city officials concluded a 12-month pilot program called "Uplift Salem," which offered 100 eligible participants monthly payments of $500 for a year. The $685,000 project was structured as a public-private partnership, utilizing ARPA funds alongside private contributions from the nonprofit group UpTogether.
Salem Mayor Dominick Pangallo praised the initiative following an impact study conducted by Salem State University, which noted high praise from recipients.
"It increases employment, strengthens our economy and helps children thrive in school. These are investments in the integrity and strength of our community as a whole," Pangallo said in a statement. "Uplift Salem was an opportunity for us to add to the body of work demonstrating the efficacy of these programs. We will continue to advance the conversation at both the state and national level."
DETROIT MOMS RUSHED TO 'NO STRINGS ATTACHED' CASH AID PROGRAM TAILORED TO NEW MOTHERS
Meanwhile, officials in Boulder, Colorado, who launched their "Elevate Boulder" guaranteed income program with $3 million in ARPA funds, are actively soliciting private donations to keep the program going now that the federal pilot phase is wrapping up.
"Contributions to the Elevate Boulder Fund will also help city staff determine the potential for ongoing, collective community support to extend the project after the pilot phase is complete," the city's official website states.
While some cities are looking to charity or local taxes to bridge the gap, others have run into severe legal roadblocks. Austin, Texas, became the first major city in the Lone Star State to fully fund its own guaranteed income pilot, utilizing $1.1 million in taxpayer funds alongside $500,000 in philanthropic donations.
However, the future of cash programs in Texas remains highly uncertain. Texas Attorney General Ken Paxton filed a high-profile lawsuit against a similar $20.5 million guaranteed income program in Harris County, dubbing it the "Harris Handout" and declaring it an unconstitutional abuse of public funds. While Austin's initial pilot concluded its run without direct intervention, the ongoing state-level litigation has effectively stalled local expansions across Texas.
Officials from Boulder, Salem, Newark, and Evanston did not respond to Fox News Digital's requests for comment.