Brandon Johnson to reinstate guaranteed income in Chicago using remaining COVID-19 relief funds

Chicago Mayor Brandon Johnson will reinstate a guaranteed income program to use up remaining COVID-19 relief funds instead of returning the money to the federal government.

The city received the money in 2021 and must allocate all of the remaining funds by the end of 2024 and spend the money by 2026, or else it must be returned. Chicago officials are hopeful all of the money will be allocated by November.

Last year, thousands of families participated in the pilot guaranteed income program , and it was popular. More than 176,000 families applied to the program, which only had 5,000 openings. The previous program gave eligible participants an extra $500 per month with no strings attached.

“The bulk of the dollars on the community initiative side will go out and have gone out under this mayor. And so it is really critically important to him that we get this done correctly and that we return $0 to the Treasury, and so that’s what our focus is,” Johnson Budget Director Annette Guzman said Monday.

Guzman said details about when the program will start again are still being finalized.

Under former Chicago Mayor Lori Lightfoot , the city received $1.9 billion in COVID-19 relief funds. Now, the city has a remaining $374 million in federal funds it's left for community projects.

Chicago has spent 79% of the federal funds and already allocated 88%. The money saved for community projects, however, has been spent and allocated at a lower percentage. About $576 million was saved for community programs. The city has spent 35% of that and allocated about 59%.

Chicago officials acknowledged they have been slow to dedicate the money to these programs. The city said the reason for the slow movement is due to federal guidelines changing about the definition of “obligation” and lengthy standard operating procedures with some contractors.

The guaranteed income program was popular with Chicago residents . One said it made her feel like she was finally “above water.”

“The cash pilot pulled me above water ‘cause I could’ve drowned, and I didn’t drown,” said Gail Goodwin, a Chicago resident. “So it does work, even if it’s for a year.”

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As a security guard, Goodwin is paid $16 per hour. She said the extra $500 alleviated stress around financial emergencies.

“The money filled in a gap,” Goodwin said. “Not a big gap, but it helped. It was there, and I knew it was available. That’s what helps, too: You know the money is available.”