Advocates Push for Permanent Cash Assistance Policies Following Expiration of COVID-19 Relief Funds

<p>Advocates for guaranteed income are seeking to establish permanent government policies for cash assistance programs that were implemented during the COVID-19 pandemic as federal relief funds are set to expire. A report published on August 12 by the Economic Security Project (ESP) researchers Shafeka Hashash, Maya Tellman, and Rayan Semery-Palumbo argues for the institutionalization of "no-strings-attached" cash assistance.</p><p>This initiative arises as city leaders across the United States are facing financial challenges, with many mayors working to sustain local cash assistance experiments that were funded by federal pandemic aid, which is nearing its spending deadline.</p><p>According to federal law, local governments must legally obligate their American Rescue Plan Act (ARPA) funds by December 31, 2024, and most obligated funds must be fully spent by December 31, 2026. In Evanston, Illinois, municipal officials have announced an expansion of the city's guaranteed income program using remaining ARPA funds before the deadline.</p><p>Evanston is among over 100 U.S. municipalities that have initiated universal basic income-style pilots since 2018. Many of these early programs relied on a combination of private donations and federal stimulus funds, which are now depleting. This financial pressure is prompting local officials to explore alternative funding sources to make cash assistance programs permanent, similar to recent budget strategies in Cook County, Illinois.</p><p>The report's authors cite data from over 250 cash and guaranteed-income pilots across 40 states and the District of Columbia, asserting that direct cash transfers are a valid policy tool. They reference the COVID-19 pandemic as a model, noting that direct government payments exemplified effective large-scale transfers that reached households quickly.</p><p>Rather than advocating for immediate universal cash handouts, the authors propose a strategic approach that links direct payments to specific life events. They argue that cash assistance is most beneficial during times of personal or financial difficulty, stating that "cash does its strongest work in moments of transition."</p><p>The report identifies life events such as childbirth, housing changes, or post-incarceration reentry as critical moments for cash assistance. The authors suggest that cash assistance is most effective when it helps individuals navigate short-term challenges, allowing them to make informed decisions rather than rushed ones.</p><p>They also argue that connecting cash assistance to significant life changes may help garner public support: "Cash delivered at a moment of transition borrows a political logic that the public already accepts," the report states. They draw parallels to Social Security, which is accepted as a benefit earned through prior contributions, and unemployment insurance, which is triggered by specific disruptions.</p><p>The broader movement for direct payments includes the Mayors for a Guaranteed Income initiative, led by former Stockton, California, Mayor Michael Tubbs. Tubbs has advocated for federal funding to support income supplements for lower-income Americans facing rising living costs.</p><p>Advocates are now tasked with converting these pilot programs into permanent taxpayer-funded initiatives. The ESP authors recommend that lawmakers integrate cash payments into existing social safety net programs during transitional periods, rather than attempting to implement a broad cash program immediately.</p><p>They suggest that many transitions already receive public funding and could be redirected toward direct cash assistance without requiring new appropriations. Examples include Temporary Assistance for Needy Families (TANF), child welfare budgets, and disaster relief funds.</p><p>State affiliates are already advancing these efforts. Economic Security California, a branch of ESP, is working to establish state-funded guaranteed income programs, with California currently leading the nation in pilot initiatives, hosting over 60 cash programs.</p><p>To support these initiatives, ESP advises local and state governments to seek dedicated revenue streams from local taxes instead of relying solely on donor funding.</p><p>ESP was founded in 2016 by a coalition of over 100 entrepreneurs, activists, researchers, and philanthropists advocating for direct cash payments. Fox News Digital reached out to the Economic Security Project for comment but did not receive a response by press time.</p>