The United States introduced its first large-scale government-funded guaranteed income program to provide direct monthly financial support to residents facing economic hardship. Under this program, selected individuals received $500 every month, without any rules on how the money must be spent. This approach marked a significant shift from traditional welfare programs.
The initiative was launched in Cook County, Illinois, using federal pandemic relief funds. The goal was to help households manage rising living costs, including housing, food, utilities, and transportation. Thousands of residents applied, showing strong demand for predictable cash assistance.
Following the pilot phase, county officials confirmed that the program delivered consistent financial relief to participants. As a result, Cook County moved to extend the program and integrate it into long-term planning, making it one of the most closely watched guaranteed income initiatives in the country.
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What Is the U.S. Guaranteed Income Program?
The Cook County Promise Guaranteed Income Program is a public assistance initiative that provides unconditional cash payments directly to residents. Participants receive $500 per month, deposited automatically, with no work requirements or spending limitations.
The program was designed as a pilot to test whether direct cash payments could improve financial stability more effectively than traditional aid programs. Unlike benefits that are limited to specific expenses, guaranteed income allows recipients to decide how best to use the funds.
The pilot began in 2022 and ran for two years. Based on administrative reviews and participant data, Cook County officials decided to continue the program beyond its original timeline.
Cook County Commissioner and CTU member Tara Stamps breaks down big news: Cook County Promise, the guaranteed income pilot, is being extended with an additional $7.5 million to support even more families! This is the first permanent county-wide guaranteed income program in the… pic.twitter.com/dVlMwD9s7v
— Chicago Teachers Union (@CTULocal1) December 9, 2025
Why Cook County Launched the Program
Cook County used funding from the American Rescue Plan Act (ARPA), which was approved to help communities recover from the economic effects of the COVID-19 pandemic. A portion of these federal funds was allocated to test long-term financial support solutions.
County leaders identified households with low to moderate income as those most affected by job disruptions, inflation, and rising housing costs. The guaranteed income model was selected because it allows quick delivery of aid without complex eligibility reviews after enrollment.
The county structured the program to ensure transparency, equal access, and protection against conflicts of interest, which helped establish it as a credible public initiative.
Eligibility Requirements for the Program
Eligibility for the first phase of the program is based on clear and measurable criteria, rather than personal circumstances or employment status. The county focused on adult residents who met income and residency requirements.
Applicants have to prove that they lived within Cook County at the time of application. This included residents of Chicago as well as suburban communities under county jurisdiction. Residency verification is mandatory before approval.
Income limits are tied to federal poverty guidelines. Households earning up to 250% of the Federal Poverty Level are considered eligible. This allowed the program to include working families who may not qualify for traditional assistance.
The program also maintained strict participation rules. Individuals enrolled in other guaranteed income programs are excluded to avoid overlapping benefits. Additionally, county officials and employees are not allowed to apply.
How Participants Were Selected
Due to high application volume, Cook County used a random lottery system to select participants from the pool of eligible applicants. This method ensured fairness and prevented bias in the selection process.
All applicants who met eligibility rules had an equal chance of being chosen. Selection was not influenced by employment type, family size, or past benefit usage, as long as income and residency requirements were met.
Once selected, participants were notified directly and enrolled for the full payment period without needing to reapply each month.
How the $500 Monthly Payments Delivered
Payments are distributed electronically through direct deposit or prepaid debit cards. This ensured quick and secure access to funds for participants without traditional banking access.
Each selected household received $500 per month, consistently, over the program’s duration. The payment amount did not change based on household size or employment status.
There are no reporting requirements after enrollment. Participants are not required to show receipts or explain how the money is spent.
How Recipients Used the Money
Although spending was not tracked at an individual level, program surveys showed common usage patterns among participants. The flexibility of the payments allowed households to address their most urgent needs.
Reported uses included housing costs, groceries, utility bills, childcare, transportation, and medical expenses. Some participants also used funds to pay down debt or build small emergency savings.
The lack of restrictions reduced administrative burden and allowed faster support delivery.
What Happens Next for the Program
Cook County approved continued funding for the guaranteed income program beyond the pilot phase. Budget planning includes allocations to maintain monthly payments and open future enrollment rounds.
While updated eligibility rules and application timelines are expected to be announced separately, officials confirmed that the program will remain part of the county’s long-term economic support strategy.
Further expansion will depend on available funding and program capacity.
Why This Program Is Getting National Attention
The Cook County initiative is often referenced in discussions about future income support models in the U.S. It provides real-world data on how direct cash assistance operates at scale.
As other states and cities consider similar programs, eligibility rules, and outcomes from Cook County continue to serve as a benchmark for policy planning.