Chicago to relaunch universal basic income program

CHICAGO — Mayor Brandon Johnson’s administration has earmarked $32 million to reinstate a program implemented under his predecessor to provide $500 in monthly payments to select low-income families.

The program will be funded by federal COVID-19 dollars that need to be allocated by the end of the year and spent by 2026 or sent back to the feds. Chicago received $1.9 billion under the American Rescue Plan Act passed by Congress in 2021, with about 88 percent already allocated and 79 percent already spent.

Former Mayor Lori Lightfoot launched the universal basic income plan in 2021, providing $500 per month to 5,000 low-income families for one year.

Specifics of the resurrected initiative have yet to be announced, but the initial program required recipients to live within city limits, be at least 18 years old, and have a household income at or below 250 percent of the federal poverty level. Recipients also needed to have experienced economic hardship due to the pandemic.

The mayor also plans to boost spending on homelessness services, increasing funds for a rapid rehousing plan.

The city is also rethinking some plans, scrapping a $5 million sobering center where intoxicated people could sober up rather than visit a hospital. Another $500,000 set aside to support outside groups running a low-barrier homeless shelter has been cut.

“It’s always making sure we’re putting these to the best use and making sure that the dollars are going to be spent at the end of the day,” city budget director Annette Guzman told WGN.

After the Johnson administration shifted $95 million to migrant services, a group of alderman led an unsuccessful push to require more city council oversight of ARPA spending.

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