The Illinois Policy Institute has reported that state lawmakers have allocated over $1 million in taxpayer-backed grants to initiatives aimed at “reimagining capitalism” and supporting a guaranteed-income pilot program. This information was revealed in the institute’s Waste Watch report.
According to the Illinois Policy Institute, the state’s fiscal year 2026 budget includes a $200,000 grant for the Reimagining Capitalism in Illinois Lab’s operating expenses and an $827,000 grant for a guaranteed-income pilot program. The institute identified 2,815 budget items costing more than $200,000 each that were added during the final hours of the legislative session, leaving limited time for public scrutiny. These two grants collectively exceed $1 million.
The Reimagining Capitalism in Illinois Lab is situated within the Chicago Federation of Labor and aims to redefine economic ownership and prosperity. The lab’s primary proposal involves a “citizen dividend,” which would impose a 5% tax on business profits to redistribute revenue to residents. The institute estimates this could provide approximately $216 per Illinois resident at the state level.
A working paper from 2024 by the National Bureau of Economic Research examined a guaranteed-income experiment involving 1,000 low-income adults receiving $1,000 monthly for three years. Compared with a control group receiving $50 monthly, participants’ earned income decreased by about $1,800 annually, and labor-force participation fell by nearly four percentage points. This raises concerns about the long-term implications of guaranteed-income programs.
Illinois’ fiscal year 2026 general-funds budget amounts to $55.1 billion — marking it as the largest in state history — balanced against projected revenues of $55.3 billion. The Civic Federation noted that this budget relies on targeted tax increases and temporary fiscal measures to address an initially estimated $3 billion shortfall.
The Illinois Policy Institute is recognized as a nonpartisan research organization dedicated to promoting economic freedom, fiscal responsibility, and policy analysis within Illinois. It provides reports and commentary on various issues such as taxes, cost of living, and government spending to inform both residents and policymakers about how decisions impact household budgets and economic growth.
