St. Louis guaranteed income program on hold after judge's pause

A St. Louis guaranteed income program was temporarily stopped by a Missouri judge during legal proceedings.

On Thursday, Circuit Judge Joseph P. Whyte issued a temporary restraining order against the St. Louis Guaranteed Basic Income Project (GBI), which will affect more than 500 families enrolled in the program.

St. Louis Mayor Tishaura O. Jones stated through a local FOX affiliate that the City of St. Louis will comply with the judge's ruling.

My administration is exploring every possible legal option to support the families of St. Louis City, she added.

The city's treasurer and comptroller, along with Jones, who signed off on the pilot program in December 2022, were named in the plaintiff's lawsuit. As a result, payments from the GBI program will be halted until the court case is settled.

On June 13, a lawsuit was filed alleging that the GBI breaches both the Missouri State Constitution and the St. Louis City Charter.

The city's lawyers argued that the program is constitutional because it aims to "support families and boost the local economy."

The lawsuit alleges that the "Missouri Constitution forbids counties, cities, or any political subdivision of the state from extending credit or providing public funds or property to private individuals, associations, or corporations."

The attorney, Bevis Schock, stated that his legal group, the Holy Joes, focuses on "upholding Constitutional standards" and that the Missouri Constitution and the City of St. Louis prohibit giving gifts to private individuals.

Schock stated on Planet Chronicle Digital that this is what it is, and he believes that business subsidies are as detrimental as a guaranteed basic income.

He added, "While both policies are problematic from a policy standpoint, the Missouri Constitution prohibits guaranteed basic income, and we believe that enforcing our constitutional norms is crucial for our society's functioning."

In October 2023, the first rollout of monthly payments of $500 was announced after the GBI program launched in December 2022. The funding came from $5 million in COVID relief funds and a $1 million donation from tech billionaire Jack Dorsey.

The program initially intended to assist 440 individuals who earned less than $53,000 and had children. However, thanks to philanthropic contributions, the program was able to increase its support to 540 participants.

The program was set to end in 2025.

The decision on the St. Louis GBI program coincides with a growing trend of similar programs across the U.S., with over 100 GBI pilots launched since 2018. Many of these GBI programs are the result of a coalition of over 100 mayors who have launched pilot programs that provide low-income participants with up to $1,000 a month with no strings attached.

Despite positive outcomes from some studies, many pilot programs encounter funding and legal obstacles.