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A Houston state district judge on Thursday denied Texas Attorney General Ken Paxton’s attempt to block Harris County’s implementation of a guaranteed income program.
Judge Ursula Hall, in Harris County’s 165th Civil Court, rejected the attorney general’s arguments that the program to give monthly stipends to more than 1,900 low-income residents violates the Texas Constitution.
“There is sufficient evidence to show that guaranteed income programs are successful, so why wouldn’t we believe it,” Judge Hall said.
First Assistant County Attorney Jonathan Fombonne said he was thrilled with the judge’s ruling.
“I feel great because we’re protecting an incredibly important program that’s going to help the county’s most vulnerable residents,” Fombonne said. “I think the judge got exactly what the legal and factual issues were. And I thought the state’s testimony, in fact, helped our case and didn’t hurt it.”
County officials said they expected Paxton to appeal the decision — and they were right. By 6 p.m. Thursday, the state filed a notice asking for an accelerated appeal.
It is likely the case could go all the way to the Texas Supreme Court and Harris County Attorney Christian D. Menefee said the county will do everything it can to protect the program.
The lawyers representing the state declined comment after the hearing, referring questions to the attorney general’s press office. The office did not respond to a request for comment.
The guaranteed income program known as Uplift Harris would award a $500 monthly stipend to more than 1,900 low-income households in a bid to provide a financial cushion to help close the wealth gap. It is being funded through $20.5 million from the federal American Rescue Plan Act. The county is scheduled to begin distributing the stipends by the end of the month.
The monthly stipend would come with virtually no spending restrictions aside from prohibitions on anything that would harm the safety and security of others, involves criminal activity or supports terrorism.
While county officials argued their case Thursday morning, Austin City Council members voted to finalize a $1.3 million contract with a nonprofit to continue its guaranteed income program.
Paxton filed the lawsuit against Harris County earlier this month, nearly three months after state Sen. Paul Bettencourt, R-Houston, sent a letter to the attorney general asking for an opinion on whether counties are allowed to offer guaranteed income programs.
Thursday’s hearing was on the attorney general’s request for a temporary injunction to prevent the county from issuing the stipends.
Precinct 3 Commissioner Tom Ramsey, who voted against the creation of Uplift Harris, was subpoenaed by the state to testify and spoke at length about how none of his precinct’s ZIP codes were included in the program.
The commissioner also said he was unaware of how participants were selected or the benefits a guaranteed income program could bring to the county.
“There’s been a lot of studies about the benefits of the (guaranteed income) programs, but I just don’t believe in it,” Ramsey said.
County attorneys drew similarities between Uplift Harris and other programs previously offered by the county through federal ARPA money, including the small business assistance and flexible financial assistance programs. Both awarded money to constituents in need through a lottery system. Ramsey voted for both.
The attorney general argued that Harris County’s program violates the Texas Constitution’s prohibition on granting “public money or thing of value in aid of, or to any individual … whatsoever.” He also said the county’s use of a lottery violates the state constitution’s equal rights provision.
Hall, however, said the attorney general’s lawyers failed to make a convincing argument about harm being done to the state. She also cited attorney general opinions dating back to as early as 1918 that talked about the need for the state to help underserved communities.
“If the program does include a public benefit, it does not violate the constitution,” she said.
Paxton’s lawyers spent a lengthy amount of time during Thursday’s three-hour hearing arguing that if the county cannot track where participants spend their stipends, it cannot be proven how the program will benefit the local government.
“If someone lost it (their stipend) gambling in Vegas, what’s the benefit to Harris County,” said Will Wassdorf, deputy division chief.
“What if the community member got great joy out of traveling, wouldn’t that be a benefit?” Hall replied. “Or what if they won big in Vegas, brought that money back to Harris County and spent it? Wouldn’t it benefit the county then?”
Guaranteed income, sometimes referred to as universal basic income, has been discussed for decades as a possible solution to help lower poverty levels. The idea has risen in popularity in recent years, particularly during the coronavirus pandemic.
Nearly 60 cities and counties across the country, including Austin and San Antonio, have launched similar programs. Neither of those two Texas cities — nor any others across the United States — have faced litigation.
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