Mayors Seek to Sustain Income Programs as Federal Support Ends

With federal pandemic relief funds running out, many mayors in the U.S. are racing to keep their income benefit programs, which are largely “no strings attached,” operational.

In Evanston, Illinois, local officials are set to expand their income guarantee initiative to utilize the remaining federal funds allocated to the city. This program, initially funded by the American Rescue Plans Act (ARPA), is required to be fully spent by the end of December 2024.

The city has organized numerous enrollment sessions for the program to distribute $300,000 before the deadline. In just the first week of registration, they received around 150 applications. A lottery will determine which 102 low-income households will benefit.

The expanded program aims to provide $500 monthly to recipients for the next six months. To qualify for the lottery, applicants must either live at or below 185% of the federal poverty line, be at least 55 years old, or have children who are in second grade or younger.

Evanston is among over 100 U.S. cities that began experimenting with universal basic income in 2018 to combat poverty. While many of these initiatives began with a mix of private donations and ARPA funds, those federal resources are dwindling. Local officials are already looking for ways to ensure these cash benefits can become a permanent feature, akin to recent budgeting decisions in Cook County.

Cook County has launched the next phase of its guaranteed basic income program following an initial pilot in 2022. To sustain this initiative without federal assistance, the county approved $7.5 million in guaranteed revenue within its budget, signaling a shift to local funding.

Evanston’s Mayor Daniel Biss, who recently secured the Democratic primary for Illinois’ 9th Congressional District, expressed his commitment to advocating for these benefits on a federal level if he wins the general election.

“The Guaranteed Income Program is vital for families and helps our local economy flourish,” Biss stated in a social media post after the City Council’s decision to expand the initiative. “We are pioneering efforts in Evanston and are ready to advocate for these programs in Congress!”

Other local leaders are also pushing to convert these temporary experiments into lasting policies. In Newark, New Jersey, Mayor Ras Baraka is urging the state government to adopt similar measures throughout New Jersey.

“The Newark Movement for Economic Equity’s Guaranteed Income Pilot Program clearly showed that cash payments enhance financial stability and benefit children’s well-being,” Baraka remarked at the launch of a new advocacy group aimed at this cause. “Our work in Newark serves as a model for broader efforts towards economic mobility across the state.”

The Newark pilot, initiated in partnership with the group Mayors for a Guaranteed Income, combined ARPA funds and corporate donations, providing $6,000 annually to 400 low-income participants over two years.

The New Jersey Cash Alliance coalition is currently lobbying in Trenton for state-funded cash programs. This coalition includes Mayors for a Guaranteed Income President Michael D. Tubbs, who has been vocal about needing a national guaranteed income program.

Tubbs, having pioneered a cash transfer pilot program in Stockton, California, argues that regular cash payments are essential for low-income Americans as everyday costs rise.

In Salem, Massachusetts, city officials have launched a year-long pilot called Uplift Salem, offering $500 monthly to 100 eligible participants. This $685,000 initiative is funded through a public-private partnership leveraging ARPA resources alongside private donations from the nonprofit UpTogether.

Mayor Dominic Pangalo has praised the program, highlighting a positive impact study from Salem State University that showcased benefits for recipients.

“It creates jobs, enhances our economy, and supports children’s educational success. These are investments in our entire community’s resilience,” Pangalo commented. “Uplift Salem presents an opportunity for us to demonstrate the effectiveness of these programs and further the discussion at both state and national levels.”

Meanwhile, in Boulder, Colorado, the city is actively seeking private contributions to continue its guaranteed income initiative, Elevate Boulder, after the initial ARPA funding phase ended.

“Donations to the Elevate Boulder Fund will also help us gauge community support for extending the project beyond its pilot phase,” according to the city’s official communications.

While some cities are attempting to leverage philanthropy and local taxes for support, others face significant legal challenges. In Austin, Texas, the city’s own guaranteed income test relied on $1.1 million in taxpayer funds and an additional $500,000 from donations.

However, the future of similar programs in Texas is uncertain. Texas Attorney General Ken Paxton has launched a lawsuit against a $20.5 million guaranteed income program in Harris County, labeling it unconstitutional and an inappropriate use of taxpayer money. Although the initial pilot in Austin proceeded without interference, ongoing legal disputes are stalling local efforts across Texas.

Officials from Boulder, Salem, Newark, and Evanston did not respond to requests for comments regarding the situation.