California mayor insists cash handout program will solve affordability challenges, but critics question cost
A California mayor insisted that handing out monthly cash payments is an effective tool to combat the state's soaring cost of living, even as local leaders face steep hurdles in securing permanent taxpayer funding to keep guaranteed income programs alive.
"I believe that guaranteed income programs like our Rise Up Alameda (RUA) pilot program are a valuable and effective tool to address the affordability crisis, based on the documented experiences of program participants," Alameda Mayor Marilyn Ezzy Ashcraft told Fox News Digital.
"The average age of the 150 program participants was 49 years, with 26% being 62 years or older, and most participants were either employed or retired."
Ashcraft’s comments follow the completion of Rise Up Alameda, the city's first-ever guaranteed income pilot project. City staff presented the program's final 24-month evaluation report to the Alameda City Council on Oct. 6.
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According to city documents, the pilot aimed to "reduce economic instability for program participants, help to change local narratives and perceptions surrounding poverty and the provision of public benefits and help to support and inform the national discussion regarding public benefits and anti-poverty policies."
The Alameda City Council previously allocated $4.6 million in federal pandemic relief funds from the American Rescue Plan Act (ARPA) to finance the initiative, which provided 150 low-income households with $1,000 per month in no-strings-attached cash over two years. However, city notices confirm that because ARPA was a one-time federal allocation, the pilot has officially concluded, and the city has no plans or budget allocated for a permanent continuation.
"As mayor, I believe our responsibility is to advance practical, compassionate and evidence-informed policies that help residents meet their basic needs, preserve their dignity and build a more stable future for themselves and their families," Ashcraft told Fox News Digital when asked whether she planned to implement a permanent program.
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Ashcraft highlighted several personal accounts of local residents who received monthly payments through the pilot.
Among them was Andrea, a certified nursing assistant who used the funds to stay afloat following the death of her mother. The financial boost helped cover medical bills, rent, gas and Bay Area bridge tolls while allowing her to care for her father and ailing brother.
Another participant, Dolores, a retiree in her 70s living in affordable senior housing after a 41-year career at AT&T, used the extra $1,000 a month to pay off credit card debt and build an emergency savings account.
Other recipients included Haroon, a rideshare and transit driver; Julia, a woman with a disability who was able to buy new mattresses, groceries and a set of car tires after an eviction forced her to move in with her sister; and Tyronne, a Navy veteran and former truck driver at the decommissioned Alameda Naval Air Station who relied on the extra money to cover medical bills and stabilize his housing.
While Ashcraft praised these personal outcomes, she acknowledged that direct cash payments are not a full remedy for California's economic pressures.
"These stories demonstrate the value of direct, unrestricted cash in helping residents navigate financial hardship, maintain stability and improve their overall well-being," Ashcraft said.
"While guaranteed income is not a stand-alone solution to the affordability crisis, programs like Rise Up Alameda can provide meaningful support as we pursue longer-term solutions to the high cost of housing, health care, transportation and other basic needs."
Alameda's program underscores a funding challenge local governments face across the nation regarding how to sustain guaranteed income pilot programs now that temporary federal pandemic relief funding is ending.
Many local guaranteed income pilots were underwritten by temporary pandemic-era ARPA allocations. With federal deadlines requiring municipalities to spend remaining relief funds, mayors and advocacy groups are searching for ways to convert short-term experiments into permanent, taxpayer-funded government programs.
A major organization advocating for guaranteed income is the Economic Security Project (ESP). Founded in 2016 by a network of entrepreneurs, activists and researchers, ESP has helped support more than 100 guaranteed income pilots nationwide. California leads the country with more than 60 pilot launches.
ESP has urged governments to consider taxpayer-funded measures to establish permanent minimum-income guarantees.
When asked by Fox News Digital whether local pilots are transitioning into permanent public policies, ESP indicated that multiple municipalities are actively working on legislative proposals.
"We can say, however, that there’s an active and growing movement for cash in hundreds of communities across the country," Shafeka Hashash, director of cash initiatives at the Economic Security Project, told Fox News Digital.
"We regularly take calls from some of the 1,500 members of the Guaranteed Income Community of Practice — researchers, nonprofits, local government officials and community leaders all interested in bringing cash to their neighborhoods," Hashash added.
"We just can’t announce any pilots or policies before the localities do."
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One pilot program has become permanent in Cook County, Illinois. To sustain the initiative without federal aid, the Cook County Board of Commissioners approved $7.5 million for guaranteed income in the county budget, signaling a shift toward long-term local funding.
Republican state officials and conservative policy groups have sought to block guaranteed income programs. Critics argue unconditional handouts discourage work, increase dependence on government assistance and misuse taxpayer funds.
"The affordability crisis is hitting Americans across backgrounds, geographies and party lines, and it's imperative that state and federal leaders adopt a solutions-focused approach," Mayors for Guaranteed Income founder Michael Tubbs told Fox News Digital.
"Banning policies that have proven effective at the local level is not only undemocratic, it is incredibly counterproductive to solving the key problem facing American families," he added.
"We should be unlocking innovation at the local level to boost economic security, stabilize households and restore faith in the American dream."