The Supreme Court of Texas ruled against Harris County’s guaranteed income program Friday, continuing to block the county from sending checks to participants.
In an opinion written by Justice James D. Blacklock, the court said the state raised “serious doubt” about the constitutionality of the program, but did not close the door on the county’s position entirely.
“Temporarily preventing expenditure of these funds while the State’s appeal proceeds ensures public funds are not irrecoverably spent in violation of the Texas Constitution,” Blacklock wrote. “Whether Harris County’s proposal would actually violate the Texas Constitution remains an open question at this early stage of the litigation.”
Harris County Attorney Christian Menefee called the decision “disappointing” and said it could set a precedent to target other guaranteed income programs throughout the country. He also said his office will continue to fight for the program.
“Helping the poor is part of our job in government,” Menefee wrote on X, formerly known as Twitter. “That’s why programs like this exist across the country and our state. This decision could end Uplift Harris as it exists today.”
Precinct 1 Commissioner Rodney Ellis assailed the ruling in a statement accusing state officials of attacking families “who constitute the foundation of our state’s economy.”
“This decision is a slap in the face to these 1,900 families and every one of the 750,000 people living under the crushing weight of poverty in Harris County,” he wrote.
In a statement, County Judge Lina Hidalgo called the opinion “cruel” and said she believes politics played a role since other jurisdictions across the state have unchallenged guaranteed income programs.
“While this decision is not a final ruling against Uplift Harris, the program is currently paused indefinitely, and the Texas Supreme Court strongly signaled that they will rule against Uplift Harris in the future,” the statement read. “The Attorney General is not only attacking Harris County’s right to local control; he’s attacking the hardworking, everyday families living in poverty who were promised this money and who were counting on these payments to stay afloat.”
The move by the state’s highest court comes after Attorney General Ken Paxton sued the county in April, just days before the guaranteed income program, Uplift Harris, was set to begin dispersing payments to selected applicants.
Two lower courts in Houston denied Paxton’s attempts to block the program . Paxton then sought a writ of mandamus from the Supreme Court to stop the county from issuing payments, resulting in Friday’s opinion.
Uplift Harris is supposed to provide $500 monthly stipends to more than 1,900 low-income residents, with the goal of helping lift them out of poverty. It is funded by $20.5 million from the federal American Rescue Plan Act.
To qualify, applicants had to reside in 10 of the county’s poorest ZIP codes and have an income below 200 percent of the federal poverty level.
The monthly stipend comes 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.
Harris County already paid $5 million to GiveDirectly, the contractor responsible for helping run the program, and is at risk of being unable to recoup those costs, according to the county’s response to the Supreme Court. The federal government requires ARPA funding be allocated by the end of 2024, meaning Harris County officials may have to reexamine where the Uplift Harris money could go.
Paxton has argued the program violates the Texas Constitution’s prohibition on giving “public money or thing of value in aid of, or to any individual … whatsoever.” He also contends the county’s use of a lottery to select participants violated the state constitution’s equal rights provision.
The county, meanwhile, argued that lifting people out of poverty serves a legitimate public purpose and benefits Harris County. It also has said the state should not have waited until days before payments were set to go out to pursue legal action.
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.
Nearly 60 cities and counties across the country, including Austin and San Antonio, have launched similar guaranteed income programs. Neither of those two Texas cities — nor any others across the United States — have faced litigation.
While county officials and the attorney general sparred in state district court, Austin’s city council approved a $1.3 million contract to continue its guaranteed income program.
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