Evanston sent out its first Guaranteed Income Pilot Program payments earlier this month that will provide 150 randomly selected Evanstonians with $500 a month for 12 months.
The 150 residents receiving funds will have their $500 loaded onto a prepaid debit card each month. The residents were randomly selected but had to be at or below 250% of the federal poverty line and fall into one of three demographic categories — a young adult between 18 and 24 years old, adults 62 years old and older and undocumented community members. 50 people in each of these categories made the 150 total recipients.
“I believe that typically, people can be trusted to spend the money in ways that are most consistent with their needs,” Evanston Mayor Daniel Biss said. “Therefore, it is often the case that people experiencing acute need can best be helped with direct cash transfers.”
Biss said this program goes against the narrative he believes many right-wing politicians tell to secure votes. He claims many politicians, like former President Ronal Reagan, had many government assistance programs designated to certain areas because poor people couldn’t be trusted with their money.
“The basic idea was that poor people couldn’t be trusted to spend money in their own best interest, and therefore if the government gave cash benefits to people in need, those payments would be manipulated, abused and squandered,” Biss said.
Biss said it is similar to the federal stimulus relief checks people received during the COVID-19 pandemic except it would be on a monthly basis. A study showed that 54% of adults said they planned on using federal stimulus cash transfers toward bills and 24% said they’d invest the money. The study also showed 10% would use federal stimulus money toward Christmas shopping or a vacation.
While not every Evanstonian is receiving the program’s funds, Biss said the entire community will benefit from the program in one way or another.
“Any initiative that makes it easier for folks who would like to stay here but maybe are having difficulty affording staying here,” Biss said. “Retaining members of our community, benefits the whole community.”
Some of those benefits, according to Biss, include better mental health for participants leading to increased ability to find and maintain employment in the city.
Biss said oftentimes when people don’t have the financial resources to meet impending bills, they’ll take any short-term gig to meet deadlines, which only keeps those struggling financially in the same situation.
“If you’re at the literal end of your road, you may not have the (time and resources) that it takes to land a long-term job with benefits with potential upward mobility and with security,” Biss said.
This could help remove some financial stress and allow recipients to look toward long-term financial security.
Corey Schmidt is a freelance reporter with Pioneer Press.