Taxpayer-funded program gives eligible Chicago households $500 in monthly guaranteed income'

[July 13, 2022]  By Andrew Hensel | The Center Square

(The Center Square) – The first cash payments of a guaranteed income program have been distributed through the taxpayer-funded Chicago Resilient Communities Pilot program.

The plan provides 5,000 households in Chicago $500 a month in taxpayer money for 12 months.

Chicago Mayor Lightfoot, who's running for reelection, announced the plan in February.

"The $31.5 million monthly cash assistance pilot that we believe will cover 5,000 households with $500 a month for one year," Lightfoot said. "If we do this right, it will be the country's largest, deepest program of its kind."

The first checks went out on Monday to selected households that met numerous eligibility requirements, including having household income at or below 250% of the federal poverty level.

"You must live in the city of Chicago, you must be 18 years or older, and you must have experienced an economic hardship due to COVID-19," Lightfoot said. "Which pretty much covers every person living in the city."

Brandie Knazze, Department of Family and Support Services commissioner, said there are no requirements for how people should spend the $500 a month.

"We know the need is great, and many Chicagoans need help to meet their basic needs, whether that is paying for childcare, groceries, baby formula, or utility bills," Knazze said. "We want participants to have the choice and flexibility necessary to thrive on their terms."

The program will run for the next 12 months and is administered by GiveDirectly, a nonprofit partner with the city.
 

Critics say such programs are disincentives for people to find work, increase costs for working taxpayers and could impact elections.

“They don’t really work,” Wirepoints President Ted Dabrowski said. “It’s just I think another good marketing tool, sadly, of being able to hand out money and get more votes.”

Chicago residents looking for information on the pilot program or to see if they qualify are advised to visit chicagocashpilot.org.

A similar program worth $3.6 million of state taxpayer funds for the Metro East St. Louis area is part of the state budget that began this month. It's unclear when that will begin.

Andrew Hensel has years of experience as a reporter and pre-game host for the Joliet Slammers, and as a producer for the Windy City Bulls. A graduate of Iowa Wesleyan University and Illinois Media School, Andrew lives in the south suburbs of Chicago.