Judge’s Decision Pauses St. Louis Income Initiative Amid Controversy

A judge has halted St. Louis’ guaranteed basic income program due to legal concerns, disrupting aid to hundreds of families.

At a Glance

Hundreds of low-income families in St. Louis will lose city funding this month.
A St. Louis judge temporarily halted guaranteed basic income payments due to a lawsuit.
The program, affecting over 500 families, was deemed possibly unconstitutional.
Mayor Tishaura Jones signed the pilot program into law in December 2022.
The legal challenge questions the program’s compliance with the Missouri Constitution and city charter.

Judge’s Intervention Stops Payments

Hundreds of low-income families in St. Louis face immediate financial strain as a judge halted the city’s guaranteed basic income program. The decision came after a lawsuit alleged the program was unconstitutional. Circuit Judge Joseph P. Whyte found the plaintiffs’ arguments compelling enough to temporarily suspend the payments.

The mayor and city officials argue that the program aims to stabilize families and inject money into the local economy. Nevertheless, plaintiffs claim the initiative violates the Missouri Constitution and the city charter, which prohibit distributing public funds to private individuals.

The guaranteed basic income program in St. Louis was set to operate until mid-2025, funded by $5 million in federal COVID relief funds and a $1 million donation from Jack Dorsey. The pilot program started in December 2022, with monthly $500 payments beginning in October 2023. Over 500 families were enrolled, and the most recent ruling affects their financial well-being.

Hundreds of low-income families will lose city funding this month, after a St. Louis judge temporarily halted guaranteed basic income payments after a lawsuit claimed the program is unconstitutional.@laurenpbren reports: https://t.co/eiS14VcH2h

— St. Louis Public Radio (@stlpublicradio) July 19, 2024

Legal Battle Sparks Heated Debate

The lawsuit, filed by the Holy Joe Society on behalf of residents Greg Tumlin and Fred Hale, points to the Missouri Constitution’s explicit prohibition against using public money or property for private gain. Attorney Bevis Schock stated, “The oath of office for city officials specifically says they won’t give gifts to private individuals. The constitution prohibits gifts to a private individual and a private corporation.”

“The oath of office for city officials specifically says they won’t give gifts to private individuals,” said Schock. “The constitution prohibits gifts to a private individual and a private corporation. … It’s a policy question whether we ought to give money to poor people. It’s a constitutional question whether it’s allowed.”

City attorneys contend that the program serves a public purpose by helping families gain financial stability and boosting local commerce. Furthermore, Mayor Tishaura Jones emphasized the city’s commitment to complying with the judge’s order and exploring other legal avenues to support affected families.

Judge stops July's $220K payment from St.Louis' guaranteed basic income program https://t.co/v79sqW6JLS

— Just the News (@JustTheNews) July 21, 2024

Immediate and Irreparable Harm Claimed

Judge Whyte noted that distributing the funds this month could lead to “immediate and irreparable injury” and would be nearly impossible to recover once payments are made. Consequently, over $220,000 in funds meant for these families have been put on hold.

“We are exploring our legal options, and my administration continues to find every avenue possible to support the families of St. Louis City,” Mayor Jones stated.

The program included families with annual incomes below $53,000 and with children in city public or charter schools. This latest ruling is pivotal, not just for St. Louis, but for the broader national dialogue around universal basic income. This program’s legal hurdles reflect similar challenges faced by other basic income initiatives across the country.

Breaking news, via @stlmag: A judge has ordered a temporary halt to payment under St. Louis' Guaranteed Basic Income Pilot Program https://t.co/MhnG4h4WJS

— Sarah Fenske (@sarahfenske) July 19, 2024