Prioritizing Guaranteed Income Programs: The Long Game

To balance the city’s budget, Mayor Brandon Johnson cut $30 million in COVID-19 relief funds designated for the Chicago Empowerment Fund, the city’s guaranteed income program. Despite protests from advocates and community members, the City Council approved this measure. This decision represents a step backward in the journey toward creating a more equitable Chicago and improving the lives of its citizens over the long term.

The Chicago Jobs Council (CJC) believes guaranteed income is not just an experiment but an essential tool for fostering a more just and equitable future. Now is the time for Chicago to lead by example, demonstrating how thoughtful, community-centered policies can empower individuals, strengthen families, and revitalize neighborhoods. By investing in the potential of every Chicagoan, we can make guaranteed income a cornerstone of our shared prosperity.

Real Stories, Real Impact

Over the summer, CJC staff visited the Inclusive Economy Lab’s Photo Voice exhibit at the Chicago Public Library, which showcased stories from participants in the first iteration of Chicago’s guaranteed income program, the Chicago Resilient Communities Pilot. The program provided $500 monthly, no-strings-attached payments to 5,000 households over 12 months.

One participant, a woman, shared how she could finally afford a wheelchair, allowing her to regain her mobility and independence. Another story highlighted a father who used the extra income to provide more for his family while pursuing his artistic passions and career growth. These stories reflect the transformative power of guaranteed income, not only in improving financial stability but also in enhancing quality of life.

In preparation for this blog post, we spoke with Misuzu Schexnider, Program Director of Financial Security at the Inclusive Economy Lab, who leads their guaranteed income research and partnership with the Illinois State Treasurer’s Office. She emphasized that the decision to cut funding for the Chicago Empowerment Fund means that 5,000 new participants will miss out on this life-changing opportunity. Furthermore, researchers will lose a critical chance to measure the broader impacts of guaranteed income on communities.

“This program’s first iteration garnered 175,000 applications,” Schexnider noted. “That means 175,000 people were hopeful for this support. The demand is undeniable. Cutting this program impacts the participants and the ripple effects we can’t fully measure—like the connections made with nonprofit providers through outreach efforts.”

Addressing Chicago’s Racial Wealth Gap

As highlighted in the Color of Wealth in Chicago Study (June 2024), Chicago grapples with significant racial wealth disparities. These persistent gaps are worsening, making programs like guaranteed income critical for addressing systemic inequities. While $500 per month—or $6,000 annually—may not close the racial wealth gap, it provides immediate relief to families struggling to meet basic needs.

“It would not drastically change the racial wealth gap,” Schexnider acknowledged, “it is part of a policy solution.”

How Chicago Can Lead on Guaranteed Income

CJC’s Director of Policy & Advocacy, Jacob Sitati, outlines five ways Chicago can establish itself as a leader in guaranteed income initiatives:

1. Investing in Sustainable Funding
   Sustainable programs require sustainable funding. Chicago should explore progressive revenue measures such as wealth taxes or corporate contributions and reallocate inefficient program funds to ensure long-term viability.

2. Learning from Local Pilots
   Building on the success of the Chicago Resilient Communities Pilot, the city must use data and community feedback to refine and scale effective models.

3. Engaging and Educating Communities
   Community engagement and education are essential to build trust and dispel misconceptions about guaranteed income. Highlighting success stories can help illustrate the program’s transformative potential.

4. Complementing Existing Support Systems
   Guaranteed income should enhance other social services, including housing assistance, workforce development, and healthcare access, creating a comprehensive framework for economic mobility.

5. Committing to Continuous Improvement
   Regular evaluation and transparent reporting will ensure programs meet their goals and adapt to the evolving needs of Chicago’s residents.

The Human Impact

While the broader economic impact of guaranteed income may take years to assess fully, the immediate benefits for individuals are undeniable. Schexnider shared that participants reported significant improvements in financial security and overall well-being.

“We’ve seen qualitative data showing that this program helped people pay for essentials like food, heating bills, glasses, wheelchairs, and even extracurricular activities for children,” she said. “Over 60% of participants were caregivers, supporting children or elderly family members. This program was a lifeline.”

Moving Forward

We will never fully understand the long-term potential of guaranteed income programs when they can be cut so quickly due to budget constraints. Chicago must find sustainable ways to fund these initiatives, ensuring they remain a reliable source of support for those who need them most.

Guaranteed income is not just a policy but a promise of dignity, opportunity, and equity. By recommitting to these programs, we can create a future where every Chicagoan has the resources to thrive.

See the full budget breakdown on WTTW.