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Texas AG sues Harris County over guaranteed income program. Is Austin next?

Paxton said the $500 payments to qualifying, randomly selected recipients violate the Texas Constitution.

AUSTIN, Texas — The office of Texas Attorney General Ken Paxton filed a lawsuit against Harris County that challenges the county's guaranteed income program, "Uplift Harris."

Nearly 2,000 eligible households will get $500 monthly for 18 months as part of the program. The funds come from the Federal American Rescue Plan Act, but Paxton said it violates the Texas Constitution.

"The Texas Constitution expressly forbids “any county, city, town or other political corporation or subdivision of the state … to grant public money or thing of value in aid of, or to any individual," Paxton said.

How did Austin's guaranteed income program perform?

A similar pilot program established in 2022 gave 135 Austin families $1,000 monthly for a year without rules on how to spend it.

RELATED: Austin paid 135 families $1,000 a month for a year. Here's what they spent it on.

As part of a study done by The Urban Institute, analysts found that nearly everyone used the money to get ahead on things like rent, child care and groceries.

In February, it was announced that Austin would start the program again in spring. At the time, enough money had already been allocated to fund 85 families. There has been no announcement about a lawsuit targeting Austin.

RELATED: How much do you need to make to afford a home in Austin in 2024? A new study shows it's $65K more than in 2020

Meanwhile, Harris County attorney Christian Menefee called the lawsuit, "Nothing more than an attack on local government and an attempt to make headlines."

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