Economic Security Project (ESP), a leader in developing guaranteed income initiatives, emphasizes the growing urgency of direct cash support. Shafeka Hashash, ESP’s director of cash initiatives, highlights how affordability issues, combined with escalating healthcare and food costs, drive the need for these programs.
Evanston, Illinois, announced the extension of its guaranteed income program using remaining federal funds from the American Rescue Plan Act (ARPA). Under federal guidelines, these funds must be committed by 2024 and spent by 2026. Rising living costs are a central concern as both political parties seek solutions for the upcoming elections. Recent data from the American Automobile Association (AAA) indicate record-high gas prices over Labor Day, underlining affordability challenges.
ESP’s advocacy for guaranteed income predates the current affordability crisis. Established in 2016, the organization collaboratively supports direct cash payments with a wide network, including entrepreneurs and researchers. Their recent report, “Right on Time: How Cash Helps Families Move Through Life’s Transitions,” supports case-institutionalizing cash assistance without conditions.
This push comes as cities nationwide face potential funding gaps, with federal COVID-19 aid nearing expiration. Municipal leaders, including Chicago suburbs like Evanston, look to sustain local cash initiatives as ARPA funds dwindle. Cook County, Illinois, just enacted a universal basic income program, reflecting this broader trend.
Based on findings from over 250 pilots across 40 states and D.C., ESP suggests that direct payments tied to life transitions are effective. The report points out scenarios such as childbirth, housing relocation, and reentry after incarceration as cases where cash assistance excels.
ESP cites the COVID-19 pandemic as a large-scale model where rapid government cash transfers achieved significant impact. The organization continues to advocate for policy shifts to integrate pandemic-era cash programs into permanent structures.
Nationally, movements like Mayors for a Guaranteed Income, led by former Stockton, California, Mayor Michael Tubbs, argue for these programs using federal tax dollars to mitigate inflation and rising living costs. Tubbs is known for early municipal cash experiments and advocates sustained support for lower-income Americans.
Evanston is one of many municipalities exploring permanent solutions as federal and philanthropic sources dry up. Cook County’s recent initiatives reflect this trend. As affordability concerns rise, Economic Security California, an ESP branch, leads in piloting state-funded programs. They encourage looking beyond donor funding to local taxes for financial sustainability.
There is substantial interest nationwide, with ESP engaging with over 1,500 members in the Guaranteed Income Community of Practice. This group includes diverse stakeholders aiming to bring cash support to more neighborhoods.
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