Business & Finance
Guaranteed income advocates propose integrating cash assistance into existing safety-net programs as federal relief expires
A report by the Economic Security Project urges lawmakers to redirect public budgets toward cash payments tied to major life transitions as pandemic-era funding ends.
The short version
- Advocates at the Economic Security Project are urging governments to embed direct cash payments into existing programs by tying them to major life transitions like childbirth, job loss, or post-incarceration reentry.
- The proposal comes as municipalities face a spending deadline for federal American Rescue Plan Act funds, which must be fully spent by December 31, 2026.
- To sustain pilot programs, researchers recommend repurposing existing social safety net budgets, such as TANF and child welfare funding, or creating dedicated local tax streams.
Key facts
- Economic Security Project researchers published a report on August 12 advocating for direct cash payments integrated into existing funding streams like TANF, workforce budgets, and child welfare.[Fox News]
- Federal law required local governments to obligate American Rescue Plan Act funds by December 31, 2024, and mandates that obligated funds be spent by December 31, 2026.[Fox News]
- More than 100 U.S. municipalities have launched universal basic income-style pilot programs since 2018, with California hosting over 60 cash initiatives.[Fox News]
What remains uncertain
- Whether state and local legislatures will approve repurposing existing safety-net funds or levying local taxes to sustain cash assistance programs remains undetermined.[Fox News]