The nation’s second-largest county is moving to keep its guaranteed income payments flowing through 2026.
Why It Matters
Thousands of low- and middle-income residents in Cook County, Illinois, will continue receiving direct cash support after officials cited the “historic success” of the county’s guaranteed income pilot.
The move comes as President Donald Trump pushes a separate proposal for a nationwide program that would send $2,000 “tariff dividend” checks to many Americans, a plan that carries major fiscal and legal questions.
Together, these initiatives highlight an intensifying debate over government cash transfers and how they should be used to combat economic insecurity and rising costs for working families.
What To Know
The Cook County Board of Commissioners, whose county seat is Chicago, voted in November to dedicate $7.5 million from its 2026 budget to keep its guaranteed income program running.
Launched in 2022 with $42 million in federal COVID-19 relief funds, the pilot provided $500 per month in no-strings-attached payments to 3,250 households.
The new funding comes from the county’s equity fund, and officials have indicated that future program rounds may also draw on remaining federal pandemic dollars.
County leaders pointed to a participant survey showing that direct monthly payments were linked to lower household stress and greater financial stability.
Since 2018, guaranteed income pilots have proliferated, with at least 100 programs tested nationwide, according to the Urban Institute, a Washington, D.C.–based economic and social policy think tank. Cook County’s initiative is one of the largest in the country and among the first to transition from a pilot to a permanent program.
At the federal level, Trump has floated a separate and much larger idea: sending $2,000 checks to Americans—excluding high-income earners—funded by tariff revenues.
Earlier this month, he wrote on social media, “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion,” adding, “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 payments would require new legislation from Congress, and economists have warned that the proposal would likely cost far more than current tariff income can support.
An analysis by the Tax Foundation estimates the federal government has collected about $120 billion in tariff revenue so far, while issuing $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 but not identical concepts.
Guaranteed income typically offers recurring monthly payments to people with low or middle incomes to help cover basic expenses. It is targeted and usually tied to specific eligibility rules.
Universal basic income, by contrast, envisions providing a set cash amount to all citizens—regardless of income or employment status—with no means testing or conditions. Its goal is to create a universal safety net and streamline or replace parts of the existing welfare system.
You can think of guaranteed income as a more targeted cousin of UBI, focused on disrupting cycles of deep poverty and economic hardship. It involves recurring cash payments aimed at specific groups, most often low- and middle-income individuals.
Eligibility for guaranteed income depends on means testing and program criteria established by the government body overseeing 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.”
Critics, however, argue the policy could have unintended consequences.
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.”
On Trump’s tariff-funded checks, Treasury Secretary Bessent told Fox News earlier this month: “We need legislation for that.”
What Happens Next
In Cook County, the details of the 2026 guaranteed income program—such as who will qualify and how residents can apply—are still being worked out by the county’s Bureau of Economic Development. That process is expected to wrap up in mid to late 2025, according to Fox 32 Chicago.
Once the bureau finalizes its plan, the county board would need to approve it before new participants can enroll.
As for Trump’s proposed $2,000 tariff dividend checks, he has suggested mid-2026 as a potential timeline for distribution. However, no legislation has yet been introduced to define eligibility, benefit levels, or how the payments would actually be delivered.
