Lottery Will Decide Who Gets $500-A-Month Basic Income Payment

CHICAGO — A lottery will be held to select which 5,000 low-income households will participate in a $31.5 million pilot program launched to determine whether providing a universal basic income — $500 for a month for a year — can reduce extreme poverty in Chicago.

"Today’s announcement is all about supporting our residents who are still struggling to make ends meet," Mayor Lori Lightfoot said.

"Our innovative, monthly cash assistance program will help to stabilize and ensure the wellbeing of residents that have been struggling both before and during the pandemic. I am dedicated to continuing to bring relief to our city’s hardest-hit communities and look forward to rolling out this new initiative as soon as possible alongside our newest fines and fees reforms and other Chicago Recovery Plan priorities."

The cash-assistance program is open to Chicagoan adults who have suffered economic hardships during the coronavirus crisis and have a household income at or below 250 percent of the federal poverty level, which is $57,575 for a family of 3.

Chicagoans can get more information on the program and the start of the application process set for April by registering at chicago.gov/cashpilot.

Lightfoot also announced that applications for two other cash-assistance programs, the Domestic Worker Relief Fund and Chicago Resiliency Fund 2.0, will be accepted in April.

This year's city budget includes $4.8 million to provide a one-time $500 grant to domestic workers and $10.7 million for One-time $500 grants for residents who were excluded from prior federal stimulus relief payments. City Hall did not immediately provide details about who qualifies for those programs.

Also starting on April 1, low-income drivers will be allowed to participate in a Clear Path Relief pilot program that allows people to pay off the original amount of fines issued in the last three years without additional penalties. Low-income drivers also would be able to pay 50 percent of traffic fines. The program also allows people with expired city stickers to "fix" the problem by buying the sticker without paying fines