Cook County to expand guaranteed income after end of taxpayer-funded
pilot
[April 10, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – An Illinois county is moving forward with plans to
expand a taxpayer-funded guaranteed income program for residents.
Cook County Board President Toni Preckwinkle announced the formation of
a committee to guide the next phase of guaranteed income after saying
the county’s pilot program was successful.
Preckwinkle said Tuesday that she remains as committed to guaranteed
income as she was at the outset of the pilot.
“Cook County is proud to be part of a national movement advocating for a
guaranteed income through action, research and the voices of our
residents. We are laying the groundwork not just for what’s next here in
Cook County but what’s possible in our country,” Preckwinkle said.
The pilot program used $42 million in federal taxpayer-funded American
Rescue Plan Act funds to give monthly $500 payments to 3,250 families
for two years.
Cook County received more than 230,000 applications during the 2022 open
application period. Recipients were required to have a household income
at or below 250% of the federal poverty level.
According to a survey of program participants, the median income for
payment recipients was $21,000 per year. Fifty-six percent of the
households included someone who was working and 58% included children.
Payments from the pilot program ended in January of this year.
Guaranteed income recipient Nikita Smith of Elk Grove Village said it
was a privilege to be part of the program.
“Getting those checks was like I jumpstarted into adulthood. For the
first time, I could budget, make repairs on my car and stay on top of
bills,” Smith said.
Preckwinkle said 75% of the program’s recipients felt more financially
secure and 56% reported reduced stress.
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Cook Country Board President Toni Preckwinkle
BlueRoomStream
Cook County Commissioner Donna Miller said cash transfers are
cost-effective and proven to mitigate economic vulnerability.
“They have a substantial long-term impact on individuals’ livelihoods
and communities. Fund infusion stimulates economies by boosting demand
for goods and services,” Miller said.
An OpenResearch Unconditional Cash Study published last year provided
1,000 low-income adults in the United States $1,000 in unconditional
cash per month and 2,000 control participants $50 per month for three
years.
The results indicated that cash recipients were two percentage points
less likely to be employed than control participants and worked an
average of 1.3 fewer hours per week compared to control participants.
Despite the results, researchers suggested that cash recipients came to
value work more.
Preckwinkle said the advisory committee will convene its first meeting
in spring 2025 and be supported by working groups, with an initial group
focused on program design options for a future County program.
The Foundation for Economic Education said while the policy is
well-intentioned, "it’s far from the most effective way to eradicate
poverty in America’s cities and, in the long-term, could have unintended
consequences on the exact people the mayors hope to help."
"One glaring problem with allowing this program to exist for any
extended period of time is that, unless it is privately funded, it would
be too expensive to maintain and would require substantial tax increases
across the board," the group said. |
