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Cook County in Illinois creates a lasting guaranteed income initiative

Cook County in Illinois creates a lasting guaranteed income initiative

Cook County Launches Permanent Basic Income Program

The second-largest county in the U.S., Cook County, has recently established a permanent basic income guarantee program. This follows the results of a previous pilot project that garnered attention.

Last week, the Cook County Commission approved a budget of $7.5 million to support this initiative. For context, Chicago, the largest city in the Midwest and third largest in the country, serves as the county seat.

Cook County’s move has highlighted the trend of guaranteed basic income programs, which have surged in popularity across the nation. Since 2018, more than 100 pilot programs have been initiated across various local governments.

The coalition known as Mayors for a Guaranteed Income, which has grown to include 150 mayors, advocates for providing low-income families with monthly payments—up to $1,000—with no strings attached. This effort seeks to influence local governments throughout the country.

Cook County’s program, which began in 2022, was initially funded by the federal COVID-19 Relief Fund. The Cook County Promise Guaranteed Income Pilot was the largest publicly funded initiative in the nation, distributing $42 million in federal aid to support 3,250 families with unconditional monthly payments of $500 over two years.

Sarah Saheb, who directs the Illinois Department of Economic Security, referred to the pilot as a “historic success,” emphasizing that as federal support wavers, Cook County is stepping up to help families meet basic needs.

The decision to make the program permanent stemmed from the findings of participant surveys conducted during the pilot. In a recent survey, about 75% of participants reported increased financial security. Additionally, 94% utilized the funds to manage emergencies, and many noted improvements in their mental health and reduced stress levels.

Participants primarily allocated funds toward essentials—like food, rent, utilities, and transportation.

However, the Illinois Policy Institute (IPI), a think tank monitoring decisions in the state, raised concerns. They suggested that Cook County’s commitment to guaranteed income might hinder long-term progress for low-income residents. They pointed to evidence from recent pilot programs indicating decreased workforce participation and income levels.

In response, the commission defended the program, explaining that outcomes can vary greatly based on design factors such as payment amounts, frequency, eligibility criteria, and local living costs.

Furthermore, Cook County is collaborating with the University of Chicago’s Inclusive Economy Lab to assess the Promise Pilot comprehensively. The aim is to craft future programs that effectively address both immediate and long-term needs.

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