As Americans are crushed by affordability, mayors push cash handouts as the answer in growing trend
Direct‑cash programs gaining traction as affordability crisis deepens
The cost of housing, food, energy and even gasoline has spurred a growing call for guaranteed income programs across the United States. A recent report from the Economic Securities Project (ESP) argues that the most effective way to help families is to provide “no‑strings‑attached” cash when they face major life transitions, such as having a child, moving homes or re‑entering the workforce after incarceration.
ESP’s latest findings
Shafeka Hashash, director of cash initiatives for ESP, told Fox News Digital that “affordability is creating the need to bring cash to communities even more urgent.” She added that the destruction of the social safety net, coupled with soaring health‑care and food costs, has heightened the urgency for direct cash transfers. “Amid the affordability crisis, we have a responsibility to share what we know about cash: that it provides stability, supports economic mobility and helps families move toward a more economically secure future,” Hash Hash said.
ESP released its August 12 report, Right on Time: How Cash Helps Families Move Through Life’s Transitions. The study draws on data from more than 250 pilot programs in 40 states and the District of Columbia, concluding that cash assistance works best during periods of personal or financial upheaval. The report recommends “cash for transitions” – tying payments to life events such as births, relocations and post‑incarceration reentry – rather than universal handouts that may be less targeted.
Hash Hash explained that the memo was “not inspired by the lack of federal funding” but rather “a reflection of our learnings and observations from more than 250 pilots across 40 states over the past decade.” She highlighted the COVID‑19 pandemic as a model, noting how government checks reached households “at speed and scale” and helped many navigate a crisis.
Municipal efforts and funding pressures
The federal government’s American Rescue Plan Act (ARPA) set a spending deadline for local governments: obligations must be made by December 31 2024, and all obligated funds must be spent by December 31 2026. Several municipalities are scrambling to keep their cash‑handout experiments afloat before the ARPA clock runs out.
In Evanston, Illinois, officials announced an expansion of the city’s guaranteed‑income program, using the remaining ARPA funds before the deadline. Evanston is one of more than 100 U.S. cities that launched universal basic income‑style pilots since 2018. While early experiments relied on a mix of private philanthropy and federal stimulus, those resources are depleting.
State affiliates are moving in the same direction. Economic Security California, ESP’s state arm, is laying groundwork for state‑funded guaranteed‑income programs, noting that California hosts more than 60 cash initiatives to date. The organization recommends that local and state governments establish dedicated revenue streams, such as local taxes, to sustain these efforts.
A national coalition pushes for change
A growing movement for guaranteed income spans the country. ESP’s Guaranteed Income Community of Practice includes more than 1,500 members—researchers, nonprofits, local officials and community leaders—who call for cash to reach their neighborhoods. The group has been closely watched by Mayors for a Guaranteed Income, led by former Stockton, California, mayor Michael Tubbs. Tubbs, who launched one of the first municipal cash experiments, argues that federal tax dollars should fund income supplements to help lower‑income Americans cope with rising inflation, rent and groceries.
“In many communities, the idea of a guaranteed income is not a new one; it’s been tested in dozens of pilots,” Hash Hash said. “We regularly take calls from some of the 1,500 members of the Guaranteed Income Community of Practice. We just can’t announce any pilots or policies before the localities do.”
The broader context
The push for direct cash transfers comes amid a nationwide affordability crisis. Rising housing prices, food costs, energy bills and even gas prices—recorded as the most expensive Labor Day holiday on the pump, with an estimated 40 million Americans paying unprecedented prices—have heightened public concern. Politicians from both parties are offering solutions ahead of the upcoming midterm elections.
As cities and states consider how best to support residents, ESP’s report suggests that tying cash to specific life events could maximize the impact of limited resources. Whether that strategy will gain traction remains to be seen, but the conversation about guaranteed income is louder than ever.