Texas AG sues Harris County for ‘guaranteed income’ program

AUSTIN (KXAN) — On Tuesday, Texas Attorney General Ken Paxton announced he is suing Harris County over its “guaranteed income” program.

The program in Harris County randomly selected residents in the county “by lottery to receive $500 cash payments for 18 months with ‘no strings attached,'” accord ing to a news release from Paxton’s office.

The program was announced in 2023 by Harris County Judge Lina Hidalgo, the release said. The funds came from 2021 American Rescue Plan Act, and Harris County received $20.5 million from it.

The AG’s office argues the program violates the Texas Constitution, which forbids counties from giving public money to any individual person, the release said.

Back in February, the City of Austin said its 2022-2023 pilot program gave $1,000 each month to low-income city residents without restrictions on how the money was spent. The city received $1.1 million, and those funds were able to assist 135 households.

Cora Neas contributed to this report