SB2392 104TH GENERAL ASSEMBLY

LRB104 11032 KTG 21114 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2392

Introduced 2/7/2025, by Sen. Graciela Guzmán

SYNOPSIS AS INTRODUCED:

20 ILCS 1305/10-80 new
30 ILCS 105/5.1030 new

Amends the Department of Human Services Act. Creates the Illinois Guaranteed Income Fund as a special fund in the State treasury. Provides that subject to appropriation, the Department of Human Services shall administer the Fund and provide grants to eligible entities for the purpose of operating pilot programs and programs, or "projects", that provide a guaranteed income to participants. Requires the Department to prioritize funding for projects that serve Illinois residents who: (1) are pregnant individuals or have become new parents in the last 3 years; (2) are facing homelessness or seeking shelter or transitioning to housing after a period of homelessness; (3) are formerly incarcerated and returning to the community, or supporting a formerly incarcerated family member who was released within a year of application; or (4) are enrolled in educational or vocational programs. Contains provisions on the methodology and manner of distributing grants; benefits counseling for individuals who receive guaranteed income payments; Department reviews and evaluations on the economic impact of the guaranteed income programs and projects; reporting requirements and the public posting of such reports; and other matters. Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Human Services Act is amended by adding Section 10-80 as follows:

(20 ILCS 1305/10-80 new)

Sec. 10-80. Illinois Guaranteed Income Fund.

(a) Definitions. As used in this Section:

"Eligible entity" means either of the following:

(1) A city, county, or city and county.

(2) A nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) or 501(c)(5) of the Internal Revenue Code of 1986, as amended.

"Guaranteed Income" means periodic, unconditional cash payments directly to individuals. A guaranteed income is not universal and is meant to prioritize cash based on need.

(b) The Illinois Guaranteed Income Fund is created as a special fund in the State treasury. The Fund shall consist of all moneys appropriated to the Department and all interest earned on moneys in the Fund. Moneys in the Fund shall be expended for the purpose of carrying out the provisions of this Section and for no other purpose. Subject to appropriation, the Department of Human Services shall administer the Fund and provide grants to eligible entities for the purpose of operating pilot programs and programs, or "projects", that provide a guaranteed income to participants. The Department shall prioritize funding for projects that serve Illinois residents who:

(1) are pregnant individuals or have become new parents in the last 3 years;

(2) are facing homelessness or seeking shelter or transitioning to housing after a period of homelessness;

(3) are formerly incarcerated and returning to the community, or supporting a formerly incarcerated family member who was released within a year of application; or

(4) are enrolled in educational or vocational programs.

(c) The Department may, at its discretion, provide grants to projects that provide a guaranteed income to populations other than those prioritized in subsection (b). The Department, in consultation with relevant stakeholders, shall determine the methodology for, and manner of, distributing grants awarded in accordance with this Section. In determining the methodology and manner of distributing grants, the Department shall ensure that grant funds are awarded in an equitable manner to eligible entities in both rural and urban counties and in proportion to the number of individuals anticipated to be served by an eligible entity's pilot program or project.

(d) In order to receive grant funds, an eligible entity shall present a plan for providing all individuals who receive guaranteed income payments funded with a grant provided under this Section with sufficient benefits counseling and informational materials to ensure that they are aware of any impact the receipt of a guaranteed income payment from the pilot program or project may have on their eligibility for other public benefit programs, if applicable.

(e)(1) The Department shall review and evaluate the projects funded under this Section to determine, at a minimum, the economic impact of the programs and projects and their impact on the outcomes of individuals, as described in the original grant application, who receive guaranteed income payments funded with a grant provided under this Section. The Department shall consult with stakeholders and staff on the details of, and data components to include in, the evaluation, as well as any other topics to be addressed by the review and evaluation, in advance of any decision to grant to a project. The Department may accept, expend, or include in consideration, funds from any source, public or private, for the review and evaluation.

(2) The Department shall submit a report to the General Assembly regarding the review and evaluation conducted under paragraph (1). The report shall be submitted to the General Assembly no later than July 1, 2028. A copy of the report shall be posted on the Department's website.

(f) Upon allocation of funding to eligible entities, as described in this Section, the Department shall report to the General Assembly, and post publicly on its website, information about the projects funded, including which specific eligible entities received grants, the expected number of individuals receiving guaranteed income payments funded with a grant provided under this Section, characteristics of the populations receiving guaranteed income payments funded with a grant provided under this Section, and the length of time each guaranteed income project will be administered.

(g) The Department may establish an appropriate method, process, and structure for grant management, fiscal accountability, payments to guaranteed income pilot participants, and technical assistance and supports for grantees that ensure transparency and accountability in the use of State funds. The Department may, at its discretion, contract with one or more third parties for these purposes.

(h) The Department may, at its discretion, contract with a third-party vendor for the purpose of developing a benefits counseling tool or informational materials for use by grantees to assist in meeting the requirements of this Section.

(i) The Department may, at its discretion, require grantees to use a specified third-party vendor for purposes of administering grantees' projects and to meet the requirements of this Section.

(j) The Department may adopt rules as necessary to implement this Section.

Section 10. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Illinois Guaranteed Income Fund.

Section 99. Effective date. This Act takes effect upon becoming law.