Cook County— the second most populous county in the United States — has extended its guaranteed income program, which has sparked a nationwide debate over the effectiveness of direct cash transfers in easing economic pressure on low-income families.
The County Board of Commissioners voted to allocate $7.5 million from the 2026 budget to keep the initiative running. According to Newsweek, this program is now considered one of the largest and most stable guaranteed-income pilots in the country.
This decision comes as discussions intensify across the U.S. regarding the role of direct financial support. Former President Donald Trump’s recent proposal to distribute $2,000 checks to Americans — excluding high-income earners — has fueled further debate about federal spending, tax revenue, and whether the U.S. should move toward a model resembling universal basic income. His plan depends heavily on tariff revenue, a controversial approach that has widened the political divide.
Cook County Extends Cash Assistance Program Amid Intensifying National Debat
Cook County first launched its guaranteed income program in 2022 using $42 million in federal COVID-19 relief funding. Since then, the program has provided unconditional monthly payments of $500 to 3,250 households. The decision to extend the initiative was supported by survey results showing a noticeable decline in financial stress and improved stability in essential household expenses among recipients.
Officials say the new expansion will likely be funded through the county’s Justice Fund, with the possibility of using remaining federal relief funds. The exact eligibility rules and application process for the next phase will be reviewed through mid-to-late 2025 before being submitted for final approval.
Reactions have been mixed across the state
Sarah Saheb, director of Economic Security for Illinois, praised the program as a “historic success”, noting that the payments helped families afford food, childcare, transportation, and other necessities.
However, Josh Bandoch from the Illinois Policy Institute criticized the move, saying the county is “embracing a failed strategy,” arguing that long-term cash assistance might reduce work incentives and lower earning potential over time.
At the federal level, the debate is even sharper. The Tax Foundation estimates that the government has collected about $120 billion in tariff revenue — far less than the roughly $300 billion needed to fund Trump’s proposed stimulus checks for 150 million Americans. Treasury Secretary Scott Bessent stated that Trump’s plan would require new congressional legislation before implementation.
Uncertainty still surrounds the timeline for distributing payments. Cook County expects to finalize its procedures sometime next year. However, no federal legislation has been introduced to launch the proposed $2,000 checks, even though Trump suggested the plan could begin by mid-2026.