Guaranteed income programs would be banned in the state of Iowa under a bill passed Monday by House Republicans. If it becomes law, it would end a pilot project underway in central Iowa.
Programs such as UpLift, which operates in Dallas, Warren and Polk counties, are designed to ease the effects of poverty by providing monthly cash stipends with no expectations or requirements for how the money is spent.
Democrats said any program that aims to reduce poverty should have the legislature’s support, but Rep. Steven Holt, R-Denison, said guaranteed income programs promote dependence on government funding and do too little to help people improve their job skills.
“I hope that this body will enact programs that foster independence, not dependence, that will actually allow people to lift themselves up, experience the dignity of work and build their own prosperity,” said Holt, who sponsored the House bill.
Holt had previously called guaranteed income programs “socialism on steroids.”
UpLift provides $500 per month to 110 low-income households. In order to be selected for the program, participants’ annual income had to be at or below 60% of the area median income, which is $59,190 for a family of four. According to UpLift, the households chosen for the pilot earn $24,542 per year on average.
The cities of Des Moines, Urbandale and Windsor Heights are among the project’s funders, but most of the financial support for UpLift comes from private foundations and nonprofits. Rep. Beth Wessel-Kroeschell, D-Ames, said since no state funding is involved, and the program has support from local officials, there is no reason for state lawmakers to be involved.
“A lot of times what happens at the local level helps us create better policy,” Wessel-Kroeschell said. “No one can live on $500 a month, but $500 a month might help ease some of the stressors of poverty — car repairs, furnace and other appliance repairs.”
UpLift began payments in May of 2023 and is scheduled to last 24 months, but the House bill (HF 2319) would force the program to end early — by January 1, 2025.
That would not only end payments to participants before was planned, it would also cut short a research project looking at how those families are using the money. Wessel-Kroeschell said that would be useful information to have.
“Allowing for the results of the project to be concluded would be so valuable to learn how we can help end generational poverty,” Wessel-Kroeschell said. “This bill is nothing but a roadblock. It removes local control and it is one more attempt to assure Iowans who are struggling will continue to struggle.”
Holt said there can be issues behind poverty that a monthly stipend doesn’t solve.
“These income programs do not cure addiction, health issues, lack of marketable skills or other factors that contribute to poverty,” Holt said. “Actually, I think you could make a compelling argument that guaranteed income programs could indeed exacerbate these problems.”
The bill passed on a vote of 55 to 43. Only Republicans voted in favor, while 7 Republicans and all Democrats voted against the bill.
