Guaranteed Income Advocates Push to Make Cash Programs Permanent as Federal Pandemic Funds Expire

With federal COVID-19 relief money running out, proponents of guaranteed income are working to convert temporary assistance initiatives into lasting government programs. The Economic Security Project released a report on August 12 titled “Right on Time: How Cash Helps Families Move Through Life’s Transitions,” in which researchers Shafeka Hashash, Maya Tellman, and Rayan Semery-Palumbo argue for making direct cash assistance a permanent fixture of public policy.

City officials across the country are confronting a fiscal deadline as pandemic-era funding expires. The federal government required local governments to legally commit their American Rescue Plan Act funds by December 31, 2024, with full spending required by December 31, 2026. Municipal leaders from more than 100 cities that launched cash-assistance pilots since 2018 are now scrambling to find new ways to sustain these programs as federal dollars dry up.

Evanston, Illinois, recently announced an expansion of its guaranteed income program using remaining ARPA funds before the deadline passes. Similar efforts are underway in neighboring Cook County, Illinois, which has explored tax-based funding mechanisms to maintain such initiatives. These moves reflect a broader national challenge as philanthropic and emergency federal resources have been largely exhausted.

The Economic Security Project’s analysis draws on data from over 250 cash and guaranteed-income pilots across 40 states and Washington, D.C., positioning direct cash transfers as a viable policy mechanism. Researchers highlighted the federal government’s pandemic stimulus checks as proof that large-scale cash transfers can reach households efficiently and at significant scale.

Rather than advocating for universal cash payments to all Americans, the report’s authors propose a more targeted approach: linking direct payments to specific life transitions such as childbirth, housing relocation, or reentry after incarceration. The strategy frames cash assistance as most effective during periods when individuals face job loss, career changes, or other bounded disruptions requiring immediate financial support.

This approach offers a political advantage, the researchers argue, by linking cash assistance to established social programs that voters already accept. They pointed to Social Security, unemployment insurance, and paid family leave as models that demonstrate public acceptance of large-scale benefits when tied to specific, verifiable circumstances rather than income status alone.

Michael Tubbs, former mayor of Stockton, California, leads Mayors for a Guaranteed Income, an organization pushing for federal funding of income supplements to help lower-income Americans manage rising inflation and housing costs. Tubbs launched one of the nation’s earliest municipal cash experiments in Stockton and has long advocated for federal tax dollars to support such programs.

The Economic Security Project recommends integrating cash payments into existing social safety net programs rather than creating new, broad-based programs. Researchers identified potential funding sources within current government budgets, including Temporary Assistance for Needy Families, child welfare programs, workforce development funding, and disaster relief allocations that could be redirected toward direct cash assistance.

State-level efforts are already progressing. Economic Security California, an affiliate of the Economic Security Project, is developing groundwork for state-funded guaranteed income initiatives. California currently leads the nation with more than 60 cash assistance pilots in operation.

To ensure long-term sustainability, the Economic Security Project urges local and state governments to establish dedicated revenue streams through local taxation rather than relying on philanthropic donations. The organization, founded in 2016, originally convened over 100 entrepreneurs, activists, researchers, and philanthropists to advocate for direct cash payment policies.