Guaranteed Income Pilot Program Act of 2025

Bill Number

H.R. 5830

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-10-24: Referred to the House Committee on Ways and Means.

Last Updated

2025-11-21T16:12:41Z

AI-Generated Summary

Purpose

The Guaranteed Income Pilot Program Act of 2025 aims to create a temporary, experimental program to test the effects of providing a guaranteed monthly cash payment to selected low-income individuals. It seeks to address financial instability caused by factors like income fluctuations, rising living costs, and wage stagnation, while studying potential benefits to health, housing, and economic mobility. The program draws lessons from COVID-19 relief efforts, which reduced hardships like food insecurity and mental health issues.

Key Provisions

• Program Structure: The Secretary of Health and Human Services (HHS), working with the Internal Revenue Service (IRS) Commissioner, will run a 3-year pilot selecting 20,000 eligible individuals (U.S. taxpayers aged 18-65). Of these, 10,000 will receive a monthly cash payment on the 15th of each month, equal to the fair market rent (a government-set standard for housing costs) for a 2-bedroom apartment in their ZIP code or a similar amount.
• Selection and Administration: Participants are chosen based on criteria developed with an external partner—a non-partisan research group or non-profit academic institution experienced in cash-transfer experiments and social science studies. The IRS will share tax records for eligibility and track income changes, while the external partner handles data collection, program design, and evaluation.
• Protections for Participants: Payments are not counted as income or assets for 12 months when determining eligibility for federal benefits (like food assistance or housing aid) or state/local programs funded by federal money.
• Study and Reporting: HHS, IRS, and the external partner will study outcomes, including economic effects, health improvements, and links between income stability and areas like employment or education. An interim report goes to Congress after 24 months of participation, and a final report (with participant interviews) follows 12 months after the program ends, assessing feasibility for expansion.
• Funding: Authorizes $495 million annually from fiscal years 2026 through 2030 to cover program costs.

Significant Changes to Existing Law

• Introduces a new disregard rule for pilot payments in federal and federally assisted benefit programs, preventing them from reducing access to aid like Medicaid or SNAP (Supplemental Nutrition Assistance Program, formerly food stamps).
• Treats the external partner as a federal employee for privacy purposes under tax laws, allowing secure access to IRS data while maintaining confidentiality (protected by Internal Revenue Code section 6103, which limits disclosure of tax information).

Potential Impacts

• On Citizens: Could improve financial security for 10,000 participants by covering housing-like costs, potentially reducing stress from emergencies (e.g., 57% of adults can't cover a $1,000 unexpected expense). Broader study findings might inform future anti-poverty policies, benefiting low-wage or gig workers facing income volatility.
• On Government Agencies: Places administrative burden on HHS (program oversight) and IRS (data sharing), requiring coordination and new reporting. May influence future budget priorities if the pilot shows positive results.
• On International Relations: Minimal direct impact, though success could position the U.S. as a leader in testing universal basic income (UBI)-style programs, potentially influencing global discussions on economic inequality.

Main Stakeholders Affected

• Participants: 20,000 eligible low-income taxpayers (aged 18-65), especially those in high-cost areas or with unstable jobs, who may gain financial relief and contribute to research.
• Government Entities: HHS (leads implementation and study), IRS (provides data and income updates), and Congress (receives reports and decides on expansions).
• External Partners: Non-profit or academic organizations with expertise in cash programs, gaining funding and research opportunities.
• Broader Public: Taxpayers funding the program; recipients of federal benefits, whose programs remain unaffected by pilot payments.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on existing tax and housing laws for data access and rent calculations, but the payment disregard could set a precedent for experimental welfare policies without altering core eligibility rules. Ensures participant privacy through federal employee status for partners, avoiding data breach risks.
• Constitutional: Aligns with Congress's spending power under Article I (taxing and spending for general welfare), as it's a limited pilot rather than a permanent entitlement. No apparent free speech or equal protection issues, though selection criteria must avoid discrimination.
• Political: Tests UBI concepts in a bipartisan findings section highlighting economic woes, but as a Democratic-led bill (introduced by Rep. Watson Coleman and others), it may spark debates on fiscal responsibility ($2.475 billion total authorization) and work incentives. Positive study results could fuel progressive reforms; negative ones might reinforce opposition to expanded cash assistance.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Watson Coleman, Bonnie [D-NJ-12]

Cosponsors (11)

Rep. McIver, LaMonica [D-NJ-10], Rep. Tlaib, Rashida [D-MI-12], Rep. Davis, Danny K. [D-IL-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Jacobs, Sara [D-CA-51], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Thanedar, Shri [D-MI-13], Rep. Mullin, Kevin [D-CA-15], Rep. Lee, Summer L. [D-PA-12], Rep. Torres, Ritchie [D-NY-15]

Recent Actions

• 2025-10-24: Referred to the House Committee on Ways and Means.
• 2025-10-24: Introduced in House
• 2025-10-24: Introduced in House

Bill Versions

• Guaranteed Income Pilot Program Act of 2025 — issued 2025-10-24 — PDF (8 pages)