Chicago Mayor Lori Lightfoot announced that her city would use a $35 million fund to try out a new universal basic income program for one year to give 5,000 low-income families $500 payments.
The official said that while the universal basic income program may be controversial for some, it just made sense for her. However, Lightfoot noted that while people should be taught how to fend for themselves, the devastation of the coronavirus pandemic has forced many into financial ruin. She said the program was a simple way for lawmakers to support families and prevent them from falling deeper into despair.
Universal Basic Income Program
Lightfoot's plan comes as part of the Chicago mayor's $16.7 billion budget for 2022, which was passed on Wednesday during a City Council meeting. After the win, the official touted the approval of the budget as the "most progressive budget ever in the history" of Chicago.
Chicago officials will be using about $2 billion funds they received from the American Rescue Plan enacted by United States President Joe Biden's administration. Despite the majority of the city's 50 aldermen expressing their support of the decision to use the funds that way, the 20 members of Chicago's Balck Caucus argued it should have gone to violence prevention programs, The Hill reported.
In support of the funding, Lightfoot said it was a way for the city's government to assist "hard-hit, low-income households in need of additional economic stability. Similar efforts, which have been tested in other areas such as California and New York, were under the title of universal basic income and gave financial support to people who have been struggling to pay for necessities.
During her budget address, the Chicago mayor said that they would not be reducing city services and reassured that there would be no city layoffs due to the program's funding. Lightfoot aims to use the city's money from the federal government to counter rising pension costs in the region.
Additionally, the proposed spending plan and federal relief funds include a budget used for police, boosting affordable housing, efforts to clean vacant lots, and planting 75,000 trees, NBC Chicago reported.
Financial Support
The recent announcement marks when Chicago has become the last city in the United States to offer monthly cash payments to residents. Participants who will receive part of the budget will be chosen randomly, but only those who earn less than $35,000 annually will be eligible for the program.
Lightfoot aims to relieve financial burdens on families that are struggling amid the coronavirus pandemic. Authorities previously revealed that hundreds of thousands of Chicago residents lost their jobs due to the effects of the health crisis in its first six months. It was also reported that roughly 18% of Chicago residents are living below the federal poverty line.
"Growing up, I knew what it felt like to live check to check. When you're in need, every bit of income helps," wrote Lightfoot earlier this month on Twitter, Business Insider reported.
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