States Debate the Future of Guaranteed Income Programs

By FOCUS, A Leonine Business

Guaranteed income and universal basic income programs, which provide direct cash payments to individuals with no conditions attached, have gained attention across the U.S. but face increasing political pushback. Since the pandemic, dozens of cities and counties have launched pilot programs using federal relief funds, philanthropy and tax dollars to test how unconditional cash can reduce poverty and improve economic stability. Many state legislatures, however, are now moving to restrict or ban such efforts entirely.

Durham, North Carolina, for example, launched a guaranteed income pilot program in 2022, providing 109 formerly incarcerated residents with $600 per month to aid their reentry into society. The program’s recidivism rate was near zero, prompting city leaders to consider extending the effort. Despite the program’s success, North Carolina lawmakers are considering HB 859, which would prohibit local governments from implementing guaranteed income programs unless explicitly authorized by the legislature. The bill passed the House in May and awaits Senate action.

Similar proposals have surfaced in Arizona and Texas, targeting local pilot programs in those states. Three Texas bills, all responding to Harris County’s plan to provide $500 monthly to low-income households, failed to pass before adjournment. In 2024, Arizona Democratic Gov. Katie Hobbs vetoed HB 2375, which would have banned cities from offering guaranteed income payments. Phoenix had a pilot program in 2022 that gave $1,000 a month to 1,000 low-income families for a year. Wisconsin’s Democratic Gov. Tony Evers issued a similar veto of AB 146 in 2023.

While supporters argue these programs reduce poverty, improve health outcomes and increase employment opportunities, critics liken them to socialism and claim they could discourage work participation. Nonetheless, guaranteed income programs have expanded rapidly. As of 2025, there have been 163 programs in 18 states and the District of Columbia, with 41 currently active. The opposition remains strong in conservative-led states. Arkansas, Idaho, Iowa and South Dakota have enacted laws banning guaranteed income programs, while Florida, Illinois, Mississippi, Montana, Oklahoma, Tennessee and Wisconsin have considered similar measures this year. Kansas HB 2101 became law in April without the governor’s signature, underscoring the bipartisan tension surrounding the issue.

Meanwhile, other states are exploring statewide pilots or feasibility studies. Connecticut HB 6841, for instance, would establish a universal basic income pilot program and create a working group to assess a broader rollout. Legislators in Hawaii, Massachusetts, New Mexico, New York and Vermont have introduced similar measures, often focused on specific populations such as foster or homeless youth, pregnant women and wildfire victims.

As debates continue, guaranteed income remains one of the most polarizing social policy experiments in the country, caught between questions of economic equity, political ideology and local control. FOCUS will continue to monitor legislation concerning guaranteed income and universal basic income programs across the country.

by Will Beacom 10/6/2025