The Economic Securities Project (ESP) is advocating for guaranteed income programs due to affordability challenges. Rising healthcare and food costs have increased the urgency of these initiatives, which aim to provide financial stability and support economic mobility.
A Chicago suburb, Evanston, Illinois, is expanding its guaranteed income program using remaining federal funds from the American Rescue Plan Act (ARPA). These funds must be spent by the end of 2026 according to federal law.
As Americans face increasing housing, food, and energy costs, political parties are working to address the affordability crisis ahead of the midterm elections. The recent Labor Day saw nearly 40 million Americans paying record-high prices for gasoline, highlighting ongoing concern over affordability.
Founded in 2016, ESP has long advocated for direct cash payments, gathering support from over 100 entrepreneurs, activists, researchers, and philanthropists. ESP’s director of cash initiatives, Shafeka Hashash, emphasized the importance of cash payments during transitions such as having a child, housing relocations, or post-incarceration reentry.
Despite the expiration of federal aid, city leaders across the nation are trying to sustain cash-handout experiments. A report from ESP titled ‘Right on Time: How Cash Helps Families Move Through Life’s Transitions,’ published on August 12, argues for ‘no-strings-attached’ cash assistance tied to specific life events instead of immediate universal cash handouts.
The report cites data from over 250 pilots across 40 states and the District of Columbia, suggesting direct cash transfers as a legitimate policy tool. ESP points to the COVID-19 pandemic as evidence, where government checks served as large-scale transfers reaching households efficiently.
Advocates wish to transform pandemic-era cash assistance into permanent policy, even as federal COVID-19 relief funds dwindle. Initiatives like Mayors for a Guaranteed Income aim to secure federal tax dollars for income supplements to help lower-income Americans keep up with inflation and rising costs.
Municipal officials in Evanston announced expanded use of ARPA funds for their guaranteed income program. More than 100 municipalities have launched similar pilots since 2018, originally relying on private and federal emergency funding. With those funds diminishing, local officials seek alternative methods to maintain cash handouts permanently.
State affiliates like Economic Security California are advancing state-funded guaranteed income programs. California leads with over 60 cash initiatives and seeks sustained efforts through new tax revenue streams.
The Guaranteed Income Community of Practice involves approximately 1,500 members, including researchers, nonprofits, local government officials, and community leaders, all interested in expanding cash programs.