As federal pandemic relief funds approach their final spending deadline, more than a hundred American cities find themselves at a crossroads — having built cash assistance programs on temporary money, they must now decide whether these experiments become permanent fixtures of local governance. The Economic Securities Project, drawing on data from over 250 pilots across 40 states, argues that direct cash transfers are most powerful not as universal entitlements but as targeted support during life's most vulnerable transitions. In an era of rising costs and fraying safety nets, the question thes
Mayors Push Guaranteed Income Programs as Federal Pandemic Aid Expires
Cash has its greatest impact in moments of transition.
Mark
Why are mayors suddenly focused on guaranteed income right now? Isn't this something they could have done anytime?
Mimi
The federal pandemic money is expiring. Cities funded these programs with ARPA dollars, and that money has to be spent by the end of 2026. They're trying to figure out how to keep working programs alive before the funding disappears.
Luke
But we should be clear—these aren't new programs. Over 100 municipalities have been running pilots since 2018. The deadline is just forcing a decision about whether to make them permanent.
Mark
What does the Economic Securities Project actually say works?
Mimi
They analyzed 250 pilots across 40 states and found that cash assistance has the strongest impact during specific life transitions—when someone has a baby, moves for housing, or comes out of prison. That's different from universal basic income, which would be ongoing for everyone.
Luke
That's an important distinction. They're not arguing for permanent monthly checks for all Americans. They're arguing for targeted cash during specific moments. The data they cite comes from their own pilots, so there's a built-in perspective there.
Mark
How are cities actually planning to pay for this if federal money runs out?
Mimi
They're looking at local tax revenue and dedicated funding streams. California is leading the way—it has more than 60 pilots and is working on state-funded programs. Cook County in Illinois has already moved toward tax-funded support.
Luke
That's the real question, though. We don't have numbers on how many cities have actually secured permanent local funding. Evanston announced an expansion, but that's using the last of the ARPA money. The shift to permanent local funding is still mostly in the planning stage.
Mark
Is this a partisan issue?
Mimi
Both parties are talking about affordability as a major voter concern. Guaranteed income advocates like Michael Tubbs, the former Stockton mayor, are pushing the idea as a solution to rising costs for rent, food, and energy.
Luke
Right, but the reporting doesn't show strong partisan alignment yet. It's mayors and advocates making the case. Whether Congress or state legislatures actually fund this is a different question entirely.
Mark
What's the strongest evidence they have?
Mimi
The Economic Securities Project points to the COVID stimulus checks as proof that large-scale cash transfers can reach people quickly. They also have data from their 250 pilots showing impact during transitions.
Luke
The COVID comparison is interesting but not quite the same thing—those were one-time emergency payments during a crisis, not ongoing programs. The pilot data is real, but it's from programs the organization itself helped create, so there's a selection effect to consider.
The Pulse
- Federal ARPA funds that bankrolled over 100 municipal guaranteed income pilots must be fully spent by December 31, 2026, creating an urgent financial cliff for cities that built programs on that foundation.
- With healthcare, food, and housing costs surging, advocates warn that dismantling these cash programs now would leave vulnerable communities without a lifeline precisely when one is most needed.
- The Economic Securities Project is reframing the argument — pushing not for universal handouts but for targeted cash during life transitions like childbirth, relocation, or reentry from incarceration, backed by data from 250+ pilots.
- Cities like Evanston and counties like Cook are racing to spend remaining federal dollars while simultaneously engineering local tax-based revenue streams to keep programs alive past the deadline.
- California, home to more than 60 active cash initiatives, is emerging as the model for state-level institutionalization, as advocates build a case that guaranteed income is a proven policy tool — not a pandemic experiment.
As federal pandemic relief funds approach their final spending deadline, more than a hundred American cities find themselves at a crossroads — having built cash assistance programs on temporary money, they must now decide whether these experiments become permanent fixtures of local governance. The Economic Securities Project, drawing on data from over 250 pilots across 40 states, argues that direct cash transfers are most powerful not as universal entitlements but as targeted support during life's most vulnerable transitions. In an era of rising costs and fraying safety nets, the question these mayors are wrestling with is ancient: what does a society owe its members when the ground shifts beneath them?
Across the United States, city leaders are racing against a financial deadline. The federal pandemic relief money that funded local cash assistance experiments is running out — programs launched under the American Rescue Plan Act must be fully spent by December 31, 2026. More than 100 municipalities launched guaranteed income pilots starting in 2018, and most of them now face the same question: what comes next?
The Economic Securities Project, which helped create many of these initiatives, released a report in August analyzing data from over 250 cash pilots across 40 states. Its central finding reframes the debate: direct cash transfers are most effective not as permanent universal payments, but as targeted support during specific life transitions — the birth of a child, a housing relocation, or reentry after incarceration. Director of cash initiatives Shafeka Hashash told Fox News Digital that the affordability crisis has made the case more urgent, pointing to the erosion of the social safety net alongside skyrocketing costs of food and healthcare.
The campaign to preserve these programs is being led in part by Mayors for a Guaranteed Income, headed by Michael Tubbs, the former mayor of Stockton, California, who launched one of the nation's earliest municipal cash experiments. But the Economic Securities Project is not simply calling for more federal spending — it is urging cities and states to build dedicated revenue streams through local taxes. California, with more than 60 active cash initiatives, is already moving in that direction, and Cook County, Illinois, has pursued similar budget strategies.
Hashash was careful to note that the organization's focus on transitional cash assistance was not born from desperation about expiring funds, but from a decade of observed data. She also flagged a broader horizon: as artificial intelligence accelerates economic disruption, the lessons from these pilots may matter more than ever. With affordability dominating voter concerns and record gasoline prices marking last Labor Day weekend, guaranteed income advocates are pressing their case — and roughly 1,500 members of the Guaranteed Income Community of Practice are listening. What began as emergency relief is becoming something more deliberate: a sustained effort to reshape how government responds when the economic ground shifts.
Across the country, city leaders are racing against a financial deadline. Federal pandemic relief money that funded local cash assistance experiments is running out. Mayors in more than 100 American municipalities launched guaranteed income pilots starting in 2018, but most of those programs depended on American Rescue Plan Act funds—money that had to be legally committed by the end of 2024 and must be fully spent by December 31, 2026. As that clock ticks down, officials are scrambling to find new ways to keep the programs alive.
The Economic Securities Project, an organization that helped create more than 100 of these cash initiatives, is making a case for why they should continue. In August, the group released a report analyzing data from over 250 cash and guaranteed-income pilots across 40 states and Washington, D.C. The central argument: direct cash transfers work best not as universal, permanent handouts, but as targeted assistance during specific life transitions—when someone has a child, relocates for housing, or reenters society after incarceration. Shafeka Hashash, the organization's director of cash initiatives, told Fox News Digital that the affordability crisis has made the case more urgent. "The destruction of the social safety net paired with skyrocketing costs of healthcare and food have made the need to bring cash to communities even more urgent," she said.
The timing of this push reflects real pressure on municipal budgets. Evanston, Illinois, recently announced an expansion of its guaranteed income program using remaining ARPA funds before the money must be spent. Similar moves are happening in cities nationwide. The broader campaign is being led by Mayors for a Guaranteed Income, an organization headed by Michael Tubbs, the former mayor of Stockton, California, who launched one of the nation's earliest municipal cash experiments. Tubbs and other advocates argue that federal tax dollars should fund income supplements to help lower-income Americans manage rising inflation, rent, and grocery costs.
But the Economic Securities Project is not simply calling for more federal spending. Instead, the organization is recommending that local and state governments establish dedicated revenue streams from local taxes to sustain these programs. California, which hosts more than 60 cash initiatives—more than any other state—is already moving in that direction. Economic Security California, an arm of the national organization, is laying groundwork for state-funded guaranteed income programs. Cook County, Illinois, has also pursued tax-funded budget maneuvers to support cash assistance.
Hashash emphasized that the organization's focus on "cash for transitions" was not born from desperation about expiring federal funds. "It is a reflection of our learnings and observations from more than 250 pilots across 40 states over the past decade," she explained. "We examined the data and found cash has its greatest impact in moments of transition." She noted that the findings feel increasingly relevant as society grapples with economic disruption from artificial intelligence and other rapid changes.
The broader political context matters too. With affordability dominating voter concerns heading into midterm elections, both parties are positioning themselves as having solutions. The past Labor Day weekend underscored the issue: the AAA estimated that nearly 40 million Americans faced record-high gasoline prices, making it the most expensive Labor Day at the pump on record. Against that backdrop, guaranteed income advocates are building a case that direct cash transfers represent a proven policy tool.
The movement is substantial and growing. Hashash said the organization regularly receives calls from roughly 1,500 members of the Guaranteed Income Community of Practice—researchers, nonprofits, local government officials, and community leaders interested in bringing cash programs to their neighborhoods. What started as emergency pandemic relief is becoming a sustained campaign to reshape how government addresses economic insecurity. The question now is whether cities and states can build permanent funding mechanisms before the federal money runs out.
Notable Quotes
The destruction of the social safety net paired with skyrocketing costs of healthcare and food have made the need to bring cash to communities even more urgent.— Shafeka Hashash, director of cash initiatives, Economic Securities Project
Cash has its greatest impact in moments of transition. These findings are increasingly urgent and resonant across the field as our society collectively grapples with how to approach mass transitions in the face of an increasingly AI-powered economy.— Shafeka Hashash, Economic Securities Project
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