Chicago Resilient Communities Pilot

The Chicago Resilient Communities Pilot is a $31.5 million dollar commitment from Mayor Lori Lightfoot and the City of Chicago’s Department of Family and Support Services as part of her effort to tackle poverty and put residents at the center of the economic recovery from the COVID-19 pandemic. 5,000 Chicagoans will be selected through an open application and a citywide lottery to receive $500 per month for twelve months, with no strings attached.

SPENDING BREAKDOWN

The data in this pie chart shows aggregate spending for guaranteed income participants in Los Angeles County, CA. This includes all non-cash expenditures from the participants’ pre-paid debit card that is loaded with guaranteed income payments monthly.

Food and groceries accounted for the largest share of spending, at 35.32%, followed by Retail sales and services (31.27%) and Transport related expenses (10.07%).

CHILD TAX CREDIT

The state of Illinois saw significant reduction in poverty as a result of the largest, national pilot in the Child Tax Credit that was implemented as a result of the Covid Pandemic.

This program provided tax credit for eligible taxpayers with qualifying children in the form of cash payouts. The credit amount varied based on factors like the number of qualifying children and the taxpayer’s income. It can lower tax liability or result in a tax refund.

During the course of this pilot, it has been proven to reduce poverty for families with dependent children – in every state.

Poverty Rate (Under new tax credit)

7.4%

Percentage point reduction

6.4%

Percent change

46.2%

Poverty Rate (Current Law)

13.8%

DEMOGRAPHICS

Basic Information

sample size (Treatment Group)

900

Avg. Age of Respondent (years)

Children in Households

Have Children in Household

1 %

No Children in Household

5 %

Avg. children in Household

Avg. Household size

Gender

Male

1 %

Female

5 %

Other

5 %

Ethnicity

Hispanic

1 %

Non-Hispanic

Race

White

1 %

African American

5 %

American Indian/ Alaska Native

5 %

Asian

1 %

Native Hawaiian/ Pacific Islander

5 %

Latino

5 %

Other/ Mixed

5 %

Marital Status

Single

5 %

Married

5 %

Partnered/ in-relationship

5 %

Primary language at Home

English

5 %

Spanish

5 %

Other

5 %

Annual Household Income (in $USD)

Mean

$ 14000

Median

$ 10800

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Zinida

The $6,000 Zinida Moore will receive from the Resilient Communities Pilot won’t, on its own, enable Moore to buy a house, for instance. But repairing her credit has allowed her to entertain the idea as a real possibility. By early May, her credit score has risen to 697 — more than 70 points above the minimum to qualify for a mortgage, which has long felt out of reach. “The goal was to give people flexibility and choice in how to improve the situation that they are in,” says Knazze, the DFSS commissioner. “People don’t want a handout. They just want a little bit of lift and a little bit of breathing room.” Over time, that breathing room can turn into substantial, sustained change. That’s the general conclusion of the Guaranteed Income Pilots Dashboard, a data collection administered by the Stanford Basic Income Lab, the Center for Guaranteed Income Research, and Mayors for a Guaranteed Income. The research, which includes statistics gleaned from more than 7,500 participants in various pilots across several cities, shows that cash assistance can make it easier for people to find jobs and secure childcare and can improve their physical and mental health. (Similarly, a 2018 study from the National Bureau of Economic Research analyzed a Canadian program and found a nearly 10 percent decrease in hospitalizations among those who received recurring payments.)

Kipp is a 65-year-old female living in Long Beach. She had been a touring musician for almost twenty years when she became ill and started teaching guitar lessons. Her business was doing well until the pandemic hit; within two weeks, she lost all but one of her students. She is using some of the money to take a business course and buy a video camera to help launch her business. She said, “I have breathing room because, when you’re stressed out, you end up holding your breath. Now I’m breathing, I’m flowing, I’m creating, I’m learning a lot of different stuff. The Breathe program has helped me on a lot of levels.”

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Kipp

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PATRIC

Patric is a 31 year old male living in Inglewood. He had just left working for the post office and was trying to figure things out. He says, “I was in between jobs and trying to figure out everything. I’ve been able to get rent relief and get help with other bills. And they’re helping me in developing my career. By the end of the program, I’m hoping to be in a position to make a big purchase, like a house.”

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