Mayors Expand Cash-Handout Programs as Affordability Crisis Deepens Ahead of Midterms
Mayors across the United States are scaling up guaranteed-income pilots as rising housing, food and energy costs strain households and federal pandemic aid nears its deadline.
Escalating housing, food and energy expenses have intensified calls for direct cash assistance, prompting dozens of U.S. mayors to expand guaranteed-income initiatives before federal pandemic aid expires. The Economic Securities Project, which has overseen over 100 cash programs, released a report drawing on evidence from more than 250 pilots in 40 states, concluding that cash is most effective during personal transitions such as having a child or moving homes.
Director Shafeka Hashash said these findings are increasingly urgent as the economy adapts to AI-driven changes. Localities like Evanston, Illinois are allocating the last of their American Rescue Plan Act funds to grow existing programs, while former Stockton mayor Michael Tubbs leads the Mayors for a Guaranteed Income coalition urging federal tax dollars to sustain these efforts. State-level groups, including Economic Security California, are preparing tax-based revenue streams to keep cash pilots alive after donor money dwindles. The push unfolds in a politically charged environment ahead of the midterm elections, with both parties seeking solutions to the affordability crisis.
Why it matters
Cash-handout pilots could become a permanent tool to ease cost-of-living pressures for millions of Americans.
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