Payments from a universal income scheme for poverty-stricken Houston residents has been halted over concerns it may be unconstitutional.
The Harris County Uplift guaranteed income pilot was intending to give selected low-income families living in high-poverty zip codes $500 for 18 months—$9,000 over the full term—with no requirement to pay it back.
The funds were intended to help reduce generational poverty, income volatility, housing instability, and improve self sufficiency among the 1,928 families who were selected for the program.
But the scheme has, for now, been blocked by the Texas Supreme Court, which has ruled in favor of a lawsuit filed by the state against Harris County.
In an opinion released Friday, June 14, the Supreme Court said: “Although we make no definitive statements about the merits, the state has raised serious doubt about the constitutionality of the Uplift Harris program, and this potential violation of the Texas Constitution could not be remedied or undone if payments were to commence while the underlying appeal proceeds.”
It cites Article III of the Texas Constitution, which stipulates that the “the legislature shall have no power to authorize any county, city, town or other political corporation or subdivision of the state to lend its credit or to grant public money or thing of value in aid of, or to any individual, association or corporation whatsoever.”
The Uplift Harris website reads: “Due to a lawsuit filed against Harris County by Texas Attorney General Ken Paxton on Uplift Harris, Harris County has been ordered by the Supreme Court of Texas to pause payments. Unfortunately, the first payment will not be delivered as originally planned.”
It said it would “continued to defend the program” and update participants on its status as soon as possible.
Newsweek has contacted Uplift Harris for further comment via email.
Harris County attorney Christian Menefee said the ruling “sets a dangerous precedent,” while saying litigation against the ruling will continue.
“Most state constitutions have bans on gifting public funds, but no other state court has barred guaranteed programs on those grounds. And of course, they haven’t, because those bans are there to stop cronyism and gratuitous gifts of tax dollars. They aren’t intended to stop governments from providing public benefits.”
Harris County commissioner Rodney Ellis said the decision, which is being appealed, was a result of “the narrow-minded powers in Austin” working “against the working families of Texas.”
“Now 1,900 working families who were expecting to have their lives changed have been robbed of a critical hand-up. But this fight is not over,” he continued.
“I will tirelessly fight for Harris County families by using these resources in a manner that will allow them to thrive. This decision is a slap in the face to these 1,900 families and every one of the 750,000 people living under the crushing weight of poverty in Harris County.”
According to Uplift Harris, Harris County has “among the highest rates of economic inequity in the country,” with 16.4 percent of its residents in poverty. It says the no-strings-attached cash injections would “make the difference between stability and deep poverty.” It is being funded by a $20.5-million grant from the federal government’s American Rescue Plan Act.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
The post Texas Plan To Give People $9,000 Stopped by Supreme Court appeared first on Newsweek.