Dozens of city governments that built guaranteed income pilots on pandemic-era federal dollars are now scrambling for sustainable funding, as American Rescue Plan Act spending deadlines close in. The Economic Security Project, which helped create more than 100 guaranteed income programs, is pushing a new strategic frame to keep those programs alive.
Under federal law, local governments had until Dec. 31, 2024, to legally obligate their ARPA funds. Most of those obligated dollars must be fully spent by Dec. 31, 2026. That hard fiscal wall is now driving mayors to find replacement revenue from local taxes, state appropriations, or a combination of both.
The pivot to cash for transitions
The ESP's Aug. 12 report, "Right on Time: How Cash Helps Families Move Through Life's Transitions," argues that direct payments have their greatest impact at specific life inflection points: having a child, relocating housing, or re-entering society after incarceration. The report draws on data from more than 250 cash and guaranteed-income pilots across 40 states and the District of Columbia.
Shafeka Hashash, ESP's director of cash initiatives, told Fox News Digital that the "cash for transitions" framing reflects a decade of observational data from those pilots, not the federal funding shortfall. She described mass transitions in an increasingly AI-powered economy as making the findings more urgent.
The group is explicit about the funding model it wants adopted: dedicated revenue streams from local taxes, not continued reliance on philanthropic or emergency federal dollars.
Evanston, Illinois, a Chicago suburb, recently announced an expansion of its guaranteed income program using remaining ARPA funds before the spending deadline. Evanston is one of more than 100 U.S. municipalities that have launched universal basic income-style pilots since 2018. California alone hosts more than 60 cash initiatives, and Economic Security California, an ESP affiliate, is laying groundwork for state-funded programs there.
The national organizing layer
The broader campaign runs through Mayors for a Guaranteed Income, led by former Stockton, California, Mayor Michael Tubbs. Tubbs has argued that federal tax dollars should fund income supplements to help lower-income Americans cover rising inflation, rent, and grocery costs. The ESP's Guaranteed Income Community of Practice counts 1,500 members, including researchers, nonprofits, local government officials, and community leaders.
The COVID-19 pandemic remains the program's central proof-of-concept. The ESP report cites federal stimulus checks as an example of direct government transfers reaching households at speed and scale, and advocates want that delivery model institutionalized before the emergency-era funding base disappears.
Hashash told Fox News Digital there is "an active and growing movement for cash in hundreds of communities across the country," and that the organization regularly takes calls from Community of Practice members seeking to launch new pilots. She added that localities must announce programs themselves before ESP can confirm them publicly.