Iowa law cuts local governments out of guaranteed income programs

Gov. Kim Reynolds has signed into law a ban on local governments adopting guaranteed income programs.

The Republican-led House File 2319 prohibits cities and counties from participating or enforcing programs that make “payments to individuals under a guaranteed income program.” It was spurred in part by one such program currently operating in a trial period in central Iowa.

Here’s what to know about the law.

What are guaranteed income programs, and why is the state prohibiting them?

The new law describes the programs as those that provide “regular periodic cash payments that are unearned and may be used for any purpose.” It does not include work studies or required training programs.

Republicans who backed the law’s passage criticized guaranteed income programs as the wrong direction to take while addressing poverty, and expressed concern that they could become more widespread. Rep. Steve Holt, R-Denison, called the programs “socialism on steroids.”

Democrats criticized the measure, saying it undermined local authority and advocates’ efforts to address poverty.

“Great things can happen at the local level, and this bill takes away cities’ and counties’ ability to solve local issues, and perhaps lead us to better public policy,” said Rep. Beth Wessel-Kroeschell, D-Ames.

How will the law impact guaranteed income programs in Iowa?

The bill would halt central Iowa’s UpLift pilot program, which provides 110 Iowans from Polk, Dallas and Warren counties with $500 per month for two years.

Payments under the program, which are unrestricted, are intended to assist Iowans in covering the costs of basic needs.

Led by The Harkin Institute for Public Policy & Citizen Engagement, UpLift is supported by Polk County and receives funding from 11 public and private sources.

One of those funding partner’s CEOs told Axios on Monday that UpLift’s scheduled 24-month pilot period would continue under non-government funding.

“We supported UpLift – The Central Basic Income Pilot to find out if a basic income program would work in Iowa,” The Harkin Institute’s executive director Matthew Reed said in a statement. “To judge the program before seeing results from the research study is a mistake.”