Mayor Lori E. Lightfoot and Department of Family and Support Services (DFSS) Commissioner Brandie Knazze announced that the first cash payments have been distributed to Chicago households through the Chicago Resilient Communities Pilot (CRCP), the $31.5 million monthly cash assistance program to benefit low-income Chicago residents and families who have faced disproportionate economic hardships during the COVID-19 pandemic.
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The CRCP is one of the largest monthly cash assistance programs in the nation, supporting 5,000 low-income households with $500 a month for 12 months to provide greater financial stability and support an equitable economic recovery. During the 3-week application window this spring, the City received more than 176,000 applications with at least 300 applications from all of Chicago’s 77 communities.
The pilot’s selection lottery prioritized households living in poverty and those in communities with preexisting economic hardship. Five-thousand households that applied were selected through the lottery and invited to enroll in the pilot.
“In order to recover fully from the economic impacts of COVID-19, we must develop solutions that equitably and inclusively address the challenges facing our residents,†said Chicago Mayor Lori E. Lightfoot. “Through this cash assistance program, we are able to serve those who have borne the brunt of COVID-19. Direct cash payments have the potential to be truly transformative for communities that need it most, which is why I remain so proud to be able to provide this vital programming for residents.â€
Selected participants met numerous eligibility requirements focused on supporting an equitable recovery from COVID-19, including having household income at or below 250% of the Federal Poverty Line and having experienced a negative economic hardship due to COVID-19.
Selected participants will receive $500 cash payments every month for the next 12 months via direct deposit into their bank account or through a prepaid debit card. In order to ensure selected participants can use the monthly cash assistance to best support their household needs, the City of Chicago strategically designed the pilot to provide flexibility and choice for households through unrestricted payments.
“People know what they need to move forward in their lives,†said DFSS Commissioner Brandie Knazze. “We know the need is great and many Chicagoans need help to meet their basic needs. Whether that is paying for childcare, groceries, baby formula or utility bills — we want participants to have the choice and flexibility necessary to thrive on their terms.â€
The application, selection, and administration of the program is being administered by GiveDirectly, a nonprofit partner with expertise in administering cash transfer programs around the world.
“Being able to put cash directly in the hands of so many families who are struggling and fulfill the promise of this program for so many — this is why we do this work,†says GiveDirectly’s U.S. Director, Sarah Moran. ■