States Are Banning Guaranteed Income Programs

Four states now have laws in place that prevent cities and counties from creating or continuing guaranteed income programs, and several more have tried or are trying.

2 minute read

May 23, 2024, 11:00 AM PDT

By Mary Hammon @marykhammon


Ornate, tan stone capitol building with a gold dome roof and low-rise city buildings in the background.

Iowa is one of the state legislatures that recently passed a law barring state and local governments from creating guaranteed income programs. | Grindstone Media Grp / Adobe Stock

“After years of momentum behind guaranteed income programs that disburse no-strings-attached cash, the backlash has arrived in force,” writes Sarah Holder in an article for Bloomberg.

More than 100 pilots have been launched in cities and counties across the United States since 2018. But this legislative session, lawmakers in South Dakota, Idaho, and Iowa passed legislation barring state and local governments from making guaranteed income payments. At least another seven other states have tried or are trying: Arkansas successfully banned localities from creating universal basic incomes in 2023; Arizona, Wisconsin, and Mississippi tried to pass similar legislation this year but failed; West Virginia has introduced a bill this year that has not yet come up for vote. Texas Attorney General Ken Paxon has also sued Harris County, which includes Houson, over its just-launched pilot, Holder reports.

Guaranteed income programs “distribute money at regular intervals to specific populations in need, like low-income residents, or new mothers or homeless youth. Unlike other social safety net programs, they don’t typically ask recipients to meet any conditions in exchange for the money or use it in particular ways. They are also said to be more efficient than other government programs saddled with red tape and administrative burdens,” writes Holder. Universal basic income follows the same principles, but all residents within a community, not just select populations, receive a set payment.

Opponents of these programs say they will deter people from working and say they are merely efforts to expand welfare. However, Holder reports increased full-time employment rates among participants in a guaranteed income program in Stockton, California, as well as reported improvements in participants’ physical and mental health in other pilots. Programs across the country, including a recent pilot in Austin, Texas, are also reporting increased housing stability among low-income recipients, who spent the majority of their payments on housing and other essentials like food.

Friday, May 17, 2024 in Bloomberg CityLab

Single-family homes in a suburban neighborhood in Florida.

New Florida Law Curbs HOA Power

The legislation seeks to cut down on ‘absurd’ citations for low-level violations.

June 16, 2024 - The Guardian

Multistory apartment building under construction.

New Tennessee Law Allows No-Cost Incentives for Affordable Housing

Local governments in the Volunteer State can now offer developers incentives like increased density, lower parking requirements, and priority permitting for affordable housing projects.

June 10, 2024 - Nooga Today

Aerial view of intersection in New York City with yellow cabs and zebra crosswalks.

Planners’ Complicity in Excessive Traffic Deaths

Professor Wes Marshall’s provocatively-titled new book, "Killed by a Traffic Engineer," has stimulated fierce debates. Are his criticisms justified? Let’s examine the degree that traffic engineers contribute to avoidable traffic deaths.

June 13, 2024 - Todd Litman

Brick high-rise apartment buildings in New York City

Study: Housing Crisis is About Affordability, not Supply

New research shows that there is no overall shortage of housing units, but all U.S. metropolitan areas face a severe lack of affordable units for low-income renters.

June 18 - University of Kansas

Couple on one side of desk with banker on other side looking at paperwork.

Are Race-Based Lawsuits Affecting Community Lenders?

Shelterforce spoke with community lending leaders and experts about the current mood across the sector. What, if anything, are organizations doing to avoid becoming the next target of conservative activists?

June 18 - Shelterforce Magazine

Rendering of Glory Park in Lewisville, Texas.

New Park Promotes Community and Connectivity in Lewisville, Texas

The city of Lewisville just celebrated the opening of Glory Park/Parque la Gloria, helping to improve park access and the quality of life for residents.

June 18 - Lewisville Leader

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.