Chicago Mayor Brandon Johnson’s administration has announced significant shifts in the allocation of approximately $80 million in federal pandemic relief funds. These adjustments aim to ensure the city maximizes its utilization of the American Rescue Plan Act (ARPA) funds before the 2026 deadline.
One of the notable changes includes restarting the guaranteed income program, initially launched during Mayor Lori Lightfoot’s tenure. This program will provide monthly $500 payments to low-income families without any strings attached. However, plans for a sobering center and support for low-barrier homeless shelters, proposed by the previous administration, have been scrapped.
With the failure of the Bring Chicago Home ballot referendum, which sought to raise funds for homeless services, the revised proposal also includes a slight increase in funding for a rapid rehousing plan to aid individuals experiencing homelessness.
Chicago received $1.9 billion in ARPA funds, with the requirement to obligate all funds by the end of 2024 and spend them by the end of 2026. The city has already outlined plans for 88% of the funds and spent 79% accordingly.
Budget Director Annette Guzman explained that the administration reassessed planned spending, identifying approximately $80 million in obligated but unspent funding. These funds will be redirected from programs deemed at high risk of not meeting the expenditure deadline.
The reallocated funds will prioritize low-risk programs, focusing on efficient delivery to beneficiaries. In addition to the guaranteed income program, the rapid rehousing initiative will receive increased funding, along with boosts for tourism and hospitality recovery, artist relief, and mental health service providers’ capacity enhancement.
Mayor Johnson’s administration emphasizes the importance of maximizing the impact of ARPA funds to address pressing needs within the city, particularly amidst ongoing challenges stemming from the pandemic.
In the coming days, formal announcements regarding the specific allocations of the shifted funds are expected. These adjustments reflect the administration’s commitment to strategic resource allocation to benefit Chicago’s communities.