The Cook County Board of Commissioners unanimously approved $7.5 million to make a guaranteed basic income pilot program permanent. This decision marks the second-largest county in the United States as a pioneer in this initiative, which has shown mixed outcomes, with some reporting improved financial security and mental health, while critics argue it may reduce workforce participation.
The program, initially launched in 2022 with federal funds as part of the American Rescue Plan Act, has provided monthly payments of $500 to 3,250 households for two years. The decision to make it permanent follows a successful pilot phase and ongoing evaluations to ensure long-term effectiveness. The county is collaborating with the Inclusive Economy Lab at the University of Chicago to conduct a thorough evaluation of the program’s effects. This decision reflects broader trends of municipalities across the U.S. exploring guaranteed income as a tool for economic security, with over 100 pilots launched since 2018.
Critics from the Illinois Policy Institute have raised concerns that the program may lead to decreased workforce participation and lower individual income. In response, the commission emphasized that outcomes and impacts vary depending on program design, including the amount of cash, frequency/duration of payments, eligibility criteria, and local cost of living. The county has also learned from a survey that participants mainly used the funds for essential needs such as food, rent, utilities, and transportation. The commission said the decision to extend the program into permanence was guided by findings from the survey, which showed that three-quarters of participants felt more financially secure and 94% used the funds to address financial emergencies.
The guaranteed basic income program has become a trend across the U.S. in recent years, with over 100 pilots launched since 2018. Mayors for Guaranteed Income, a coalition of 150 mayors, has pushed for pilot programs offering up to $1,000 a month with no strings attached. The Cook County program was initially the largest publicly funded program in the nation receiving $42 million in federal funding. The county’s decision to make the program permanent reflects a growing interest in using guaranteed income as a tool for economic security. It also highlights the role that local governments can play in addressing economic inequality when federal support is limited or absent.