The big picture
After testing out monthly assistance for residents during the COVID-19 pandemic, Austin funded and launched a pilot guaranteed income program in 2022. The more than $1 million initiative was managed by nonprofit UpTogether and enrolled 135 area households—including 85 funded through the city—chosen based on income levels and housing insecurity. Austin's program was among dozens of similar initiatives that have recently taken place nationwide.
An evaluation from the Urban Institute found many Austin recipients stabilized their housing and financial situations thanks to the direct cash transfers. Improvements tied to participants' the careers, health and social interactions were also reported. Urban Institute's final review is available here.
After that trial run, city leaders voted to extend the $1,000 per month assistance to dozens more households. The $1.34 million program, rebranded as family stabilization grants, kicked off in June 2024 and is serving almost 170 families—96 supported by city funds—for one year. UpTogether's baseline report from last June can be viewed here.
Following the guaranteed income pilot and the current round of family stabilization grants, City Council voted Jan. 30 to extend the program for up to three years at cost of $1.3 million annually.
"The Family Stabilization Grant is a lifeline for many of our working families, helping them stay housed, pay bills and care for their loved ones," said Mayor Pro Tem Vanessa Fuentes, who sponsored the funding in this year's budget. "I’ve been proud to champion this program for the past three years because when we support our families, we can build a stronger, more resilient Austin. I’m grateful to see these latest grants reach those who need them most."
Austin's payments continue as Attorney General Ken Paxton is moving to shut down a similar initiative launched in Harris County, based on an alleged violation of the Texas Constitution's prohibition on government payments to individuals. The "Uplift Harris" program was halted by the Texas Supreme Court last year, although county leaders went on to reboot it in a new form that also drew a legal challenge.
Austin is not facing litigation and maintains its program is legal.
What's next
Once the next year of payments begins begins, UpTogether will continue overseeing the $1,000 monthly transfers to 96 households over 12 months. Additional years will depend on available funding and council approval.
Families will still be picked based on factors like income and economic hardship, with a focus on those with children. Previous program participants aren't eligible. The city will also track economic data and personal stories, like how the payments are used.
"In partnership with local community-based organizations, participants will be enrolled and screened based on the outlined criteria, prioritizing families and households at risk of displacement due to unaffordability," a city spokesperson said.
Legal proceedings in a state case against Harris County's payment plan remain in progress, most recently with arguments in the Fifteenth Court of Appeals on Feb. 12. Additionally, several state lawmakers have filed legislation this year that'd ban all guaranteed income programs in Texas.
"The city of Austin is monitoring legislation and is committed to adhering to state and federal laws," the city spokesperson said.
