The biggest and most historic initiative in social assistance in the United States emerged when Cook County, Illinois, launched the nation’s first publicly funded guaranteed income program. Under this program, selected families received direct financial assistance of $500 every month, without any conditions. In a time of rising inflation, unemployment, and economic uncertainty, this program was a significant ray of hope for thousands of people.
In this article, we will understand in detail how this program works, who was eligible, what the selection process was like, and why this initiative has become so important for the entire United States.
Table of Contents
What is a Guaranteed Income Program?
Cook County launched this program in December 2022 as a two-year pilot project under the American Rescue Plan Act. 3,250 families selected for this scheme received $500 every month. This amount was completely unrestricted, meaning the families had complete control over how to spend it.
The program was open to all eligible residents living in both urban and county areas. After the application process was complete, a lottery system was used to select participants, ensuring equal opportunity for all applicants.
People could use this money according to their needs, such as:
- Rent
- Groceries
- Childcare
- Medications or medical treatment
- Transportation
- Emergency expenses
The government found during the program that unconditional cash assistance increased families’ financial stability, reduced stress, and helped people make better financial plans. This is why Cook County announced that the program will be implemented as a permanent policy starting in 2026.
Eligibility for the Program—Who was eligible?
The eligibility criteria for this first-of-its-kind publicly funded guaranteed income program in the US were specifically designed for adults facing economic insecurity.
1. Age Requirement
- Applicants must be at least 18 years old.
- The aim was to include those who manage their own financial responsibilities.
2. Residency Requirement
- Applicants were required to be legal residents of Cook County, Illinois.
- This included Chicago and all of its suburbs.
3. Income Limit
- The family’s total income had to be up to 250% of the Federal Poverty Level.
- Example:
- For a family of four, families with an income of up to approximately $69,000 per year were eligible.
4. No Participation in Other Guaranteed Income Programs
- If an individual was already participating in another GI program, they were not eligible for this scheme.
- The goal was to extend assistance to as many people as possible.
5. Immigration Status Did Not Matter
- The most unique aspect of this program was that it was open to both documented and undocumented immigrants.
- This is why it was considered one of the most inclusive programs in the United States.
6. Exclusion of County Officials
- To maintain transparency, Cook County officials and their family members were not allowed to apply.
How were participants selected?
The number of applications for the program far exceeded the available slots. Therefore, the county administration adopted a computer-based lottery process. After the application deadline, all eligible applicants were randomly selected by the system.
Selected families received $500 each month, and there were no government restrictions or conditions on how the money could be spent. This freedom empowered people to make decisions based on their own needs.
Why was this program specifically for low- and middle-income groups?
The economic shock following the pandemic disproportionately affected low- and middle-income families. This group often faces issues such as job insecurity, childcare costs, rising medical bills, and rent.
Various GI trials around the world have proven that unconditional cash assistance leads to:
- Improved mental health
- Reduced financial stress
- Better savings and future planning
Increased focus and stability at work Cook County designed its model taking these studies into account.
The program is to be implemented permanently in 2026.
Following the success of the pilot phase, Cook County decided to implement the program permanently. The 2026 budget includes a provision of $7.5 million for this program.
In the next phase:
- New eligibility rules
- Application dates
- Selection process
- Potentially increased amount
will be announced in 2026. The county administration is also considering raising the income limit or including more families.
Why is this program important for the entire US?
Cook County’s initiative is not just a local program. It could bring about a major change in America’s social safety net.
Traditional government assistance programs often have:
- Complex rules
- Numerous conditions
- Spending limits
In contrast, guaranteed income:
- Gives people the freedom to spend
- Provides a simpler way to reduce poverty
- Offers stability to working families
- Acts as a safety net during unexpected crises
If such a program is adopted by other states or at the federal level in the future, it could significantly transform America’s social security system.
FAQs
A. Adults living in Cook County with income up to 250% of the Federal Poverty Level were eligible.
A. No. Both documented and undocumented residents were allowed to apply.
A. A random lottery system was used after the application window closed.
A. Yes. The payments were fully unrestricted and could be used for any personal or household needs.
A. Yes. Cook County has announced that the Guaranteed Income Program will become permanent starting in 2026.
