Mayors Work to Preserve Cash Benefit Programs as Federal Funding Expires

With the federal pandemic relief funds becoming scarce, several mayors across the U.S. are trying to keep their “no strings attached” benefit programs alive.

In Evanston, Illinois, just outside Chicago, local officials recently announced an expansion of the city’s guaranteed income program to utilize the remaining federal funds. This initiative was initially supported by the American Rescue Plans Act (ARPA). According to federal regulations, these recovery funds must be spent completely by the end of December 2024.

Evanston organized various enrollment sessions to get the $300,000 distributed before the funding deadline. Impressively, around 150 applications came in during the first week alone, and these will enter a lottery to select 102 low-income households to receive support.

The expanded program is set to issue $500 monthly payments to the chosen households over a six-month period. Eligibility criteria include living at or below 185% of the federal poverty line, being at least 55 years old, or having children in second grade or younger.

Local Leaders Advocate for Permanent Funding

Beyond Evanston, there’s a push to transition these temporary pilots into permanent policies. Cook County, the second largest county in the U.S., is establishing a new phase of its guaranteed basic income program after a pilot in 2022. To maintain this effort independently of federal funds, the Cook County Commission has earmarked $7.5 million in guaranteed local revenue, reflecting a shift towards sustainable funding.

Evanston Mayor Daniel Biss, who is currently running in the general election for Illinois’ 9th Congressional District, expressed his intent to advocate for similar benefits at the federal level if elected. “The Guaranteed Income Program offers vital support to families while boosting local economies,” he remarked after the city council’s decision to expand the program, asserting a commitment to champion these initiatives in Congress.

Newark, New Jersey, is also interested in similar measures. Mayor Ras Baraka emphasized the success of their Guaranteed Income Pilot Program, which has shown that cash payments can enhance financial stability and improve child outcomes. He’s now calling for state-level implementation across New Jersey.

Push for Statewide Implementation

The Newark pilot, launched in partnership with the advocacy group Mayors for a Guaranteed Income, combined ARPA funds and donations to provide $6,000 per year to 400 low-income residents over a two-year period. Advocates are currently lobbying for state-backed cash policies to support families throughout New Jersey.

Among those involved is Michael D. Tubbs, former mayor of Stockton, California, who has been a vocal proponent of a national guaranteed income program. He argues that low-income families require regular financial support to manage rising everyday costs like rent and groceries.

In Massachusetts, Salem has also initiated a pilot program called Uplift Salem, allowing 100 participants to receive $500 monthly for a year. Funded through a mix of ARPA money and private contributions, a study conducted by Salem State University found positive impacts on the community.

Mayor Dominic Pangalo noted, “It increases jobs, strengthens our economy, and helps kids thrive in school.” He views Uplift Salem as a critical step toward demonstrating the effectiveness of cash support programs.

Challenges Ahead for Cash Programs

However, some cities are facing considerable hurdles. In Boulder, Colorado, efforts are underway to keep their Elevate Boulder program alive through private donations after federal funding concluded. “Donations to the Elevate Boulder Fund will help gauge community support for continuing the initiative,” reads a statement from the city.

Meanwhile, in Texas, legal challenges threaten local efforts. Austin, which managed to fund its own guaranteed income pilot with $1.1 million from taxpayers and $500,000 from donations, has seen its plans hindered by an ongoing lawsuit from the Texas Attorney General. The attorney contends that a similar program in Harris County is an unconstitutional misuse of public funds. The initial pilot in Austin wrapped up without direct intervention, but state-level litigation continues to impede broader implementation in Texas.

Officials in Evanston, Newark, and other cities have not commented on recent developments.