Austin City’s Initiative Faces Opposition from State Attorney General

Austin Plans to Restart Monetary Aid to Low-Income Families amidst State-level Disputes

In a surprising move, Austin city officials have announced plans to re-establish a program offering unconditional monthly monetary grants of $1,000 to certain households in the city. This decision is intended to assist families grappling with financial instability, particularly in these times of economic uncertainty. However, the legality of such a guaranteed income initiative is currently disputed at the state level.

Details About the Planned Program

A pilot initiative was introduced by city authorities in 2021, which aimed to help families struggling with housing insecurity by providing them with monthly checks. This proposal came in the wake of a similar rent assistance measure implemented during the Covid-19 pandemic. The one-year pilot initiative, budgeted at $1.14 million, received formal approval from the City Council in 2022 to support 135 low-income households.

Houses that were facing eviction or were behind on rent or in the process of transitioning out of homelessness were targeted by the pilot program. The success of the initiative, conducted in collaboration with the non-profit organization UpTogether, was tracked and measured by the Urban Institute, a research firm based in Washington, D.C.

The results of the pilot project appeared promising. Participants reported using most of the payment received towards housing, and claimed to feel more secure regarding their housing situation post-enrollment. Furthermore, several participants reported making significant progress on their rent or mortgage payments, thus reducing their risk of losing their housing.

The Impact of the Program

The program seems to have helped many participants stabilize not only their housing situation but also their career prospects, educational situations, social network, mental well-being, and nutritional status. Owing to its success, the City Council had already appropriated funds for another round of a similar initiative in this year’s budget. On April 18, officials will vote on a new $1.34 million contract with UpTogether to launch a program aiming to help dozens of households in a similar manner.

Eligibility for the New Program

The proposed “family stabilization grant program” seeks to address multiple forms of economic insecurity, not just housing. If approved, the city anticipates that 96 new households will start receiving $1,000 monthly checks over one year. City officials and UpTogether will work in collaboration with local organizations to select eligible participants.

As with the previous initiative, the upcoming program won’t be open to past participants. Priority may potentially be given to households with dependents. A certain set of eligibility criteria have also been presented, based on which households will be selected for the program.

State-level Opposition to Guaranteed Income Programs

Universal basic income initiatives like the one planned by Austin city officials have grown in popularity across the nation, especially in light of the economic instability brought about by the pandemic. But such programs have met with opposition too.

In Texas, Attorney General Ken Paxton aims to overturn such income programs, which he describes as legally and constitutionally invalid political schemes. While currently targeted at a similar initiative in Harris County, Paxton’s opposition could significantly impact Austin’s plans. His lawsuit alleges that local guaranteed income programs violate a provision in the Texas Constitution, which prohibits cities and counties from providing public money to individuals.

Austin’s Response to the Opposition

While they acknowledge the constitutional prohibition against gifts of public funds, city officials maintain that their program’s design incorporates stringent applicant criteria, data collection and monitoring measures to ensure compliance with the laws. They express confidence in the ability of their planned initiative to withstand any potential legal scrutiny under state laws.

The city is committed to promoting financial stability for its residents, leading to better overall life outcomes such as improved savings, food and housing security, and increased opportunity for children.