Thousands of low- and middle-income residents in Cook County, Illinois, will continue receiving direct cash assistance after officials moved to extend the county’s guaranteed income initiative through 2026.
The decision comes as President Donald Trump promotes a separate national proposal to send Americans $2,000 “tariff dividend” checks, a plan that raises substantial fiscal and legal questions.
Together, these efforts highlight an ongoing national argument over how — and whether — government cash payments should be used to tackle economic insecurity and rising living costs for working families.
What to know
In November, the Cook County Board of Commissioners, whose county seat is Chicago, voted to allocate $7.5 million from its 2026 budget to keep the guaranteed income program going.
Launched in 2022 with $42 million in federal COVID-19 relief funds, the original pilot provided $500 per month in no-strings-attached payments to 3,250 households.
The new round of funding will come from the county’s equity fund, though officials say future phases may still draw on remaining federal pandemic dollars.
County leaders point to survey results from participants indicating that regular cash support lowered stress levels and improved financial stability.
Across the country, guaranteed income pilots have multiplied since 2018. At least 100 such programs have been tested nationwide, according to the Urban Institute, a Washington, D.C.–based think tank focused on economic and social policy.
Cook County’s initiative is among the largest of these efforts and one of the earliest to move toward permanency.
At the federal level, Trump has proposed a separate and significantly larger plan: issuing $2,000 payments to Americans—excluding high-income earners—financed by tariff revenues.
Earlier this month, he wrote on social media that “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion,” adding that “A dividend of at least $2,000 a person (not including high-income people!) will be paid to everyone.”
Treasury Secretary Scott Bessent has emphasized that such a program would require new legislation from Congress, and economists have noted that the proposed payments would far exceed current tariff receipts.
According to an analysis by the Tax Foundation, the federal government has collected roughly $120 billion in tariff revenue so far, while providing $2,000 checks to 150 million Americans would cost nearly $300 billion.
Guaranteed income vs. universal basic income
Guaranteed income and universal basic income (UBI) are related concepts, but they are not the same.
- Guaranteed income typically provides recurring cash payments to people with low or moderate incomes. The goal is to support financial stability and reduce deep poverty by targeting specific populations.
- Universal basic income offers a fixed payment to all citizens, regardless of income or employment status, with no means testing or conditions. It’s designed as a broad safety net and a way to simplify the social welfare system.
Guaranteed income can be seen as a targeted cousin of UBI: it uses recurring, unconditional cash payments, but focuses them on particular groups—most often low- and middle-income residents.
Who qualifies for a guaranteed income program depends on eligibility rules and means tests set by the government or agency running the initiative.
What people are saying
Sarah Saheb, director of Economic Security Illinois, said in a November 20 statement:
“With working families struggling to afford their daily lives, Cook County is taking bold action to put money directly back in their pockets.
Cook County’s guaranteed income pilot was a historic success, helping families afford the groceries, child care, and transportation they need to thrive. We are thrilled to see President Preckwinkle make this program permanent and look forward to partnering on the work ahead to make sure even more families can benefit.”
Not everyone agrees with the approach. Josh Bandoch, head of policy at the Illinois Policy Institute, told Fox News Digital:
“Cook County is making its guaranteed income pilot permanent and committing millions to a failed strategy already shown to leave people with less work experience and lower earnings. That should alarm anyone who wants real, long-term progress for low-income residents.”
Speaking about the proposed $2,000 tariff checks, Treasury Secretary Bessent told Fox News earlier this month: “We need legislation for that.”
What happens next
For Cook County, the exact structure of the 2026 guaranteed income program—including eligibility rules and how residents can apply—is still being developed by the county’s Bureau of Economic Development. Fox 32 Chicago reports that this work is expected to wrap up by mid to late next year.
Once the Bureau finalizes its recommendations, the county board will need to approve the plan before a new group of recipients can enroll.
On the federal side, Trump has floated mid-2026 as a potential timeline for issuing his proposed $2,000 checks, but no legislation has yet been introduced to define who would qualify, how much they would receive, or how the payments would be delivered.
