Guaranteed Income Pilot Program Act of 2021
Bill: H.R.4342 | Sponsor: Rep. Watson Coleman, Bonnie (D-NJ)
Policy area: Taxation

Summary:
Guaranteed Income Pilot Program Act of 2021
This bill directs the Department of Health and Human Services (HHS) to establish and implement a three-year pilot program to provide a guaranteed monthly income to individual taxpayers between the ages of 18-65. HHS must consult with the Internal Revenue Service and certain nonpartisan and nonprofit agencies or academic institutions with expertise in social science experimentation to develop and award income subsidies to eligible taxpayers and to conduct a study on the outcomes of the program.

To establish a pilot program providing certain individuals with a 
guaranteed monthly income, to study the effect of a guaranteed monthly 
          income on such individuals, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Guaranteed Income Pilot Program Act 
of 2021''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Too many Americans cannot achieve financial stability 
        due to income volatility, the rising cost of living, wage 
        stagnation, and a lack of affordable housing.
            (2) Real wages have failed to keep pace with inflation, 
        meaning the purchasing power of American households has not 
        changed in 40 years.
            (3) Income volatility, defined as an annual income 
        fluctuation of 25 percent or more, impacts nearly half of the 
        United States population.
            (4) Thirty-six percent of American households indicate that 
        they would face difficulty covering a $400 emergency expense 
        with readily available cash or a checking account. There are 
        significant disparities based on race and ethnicity: While only 
        38 percent of White households report difficulty meeting an 
        unexpected $400 expense, the same is true for more than half of 
        Black and Latinx households.
            (5) Full-time minimum wage earners cannot afford an average 
        2-bedroom apartment anywhere in the United States.
            (6) The changing nature of the economy, including the rise 
        of the gig economy, unemployment risks posed by automation, and 
        the fluctuating nature of waged labor, will result in increased 
        income volatility and prohibit upward economic mobility.

SEC. 3. GUARANTEED INCOME PILOT PROGRAM.

    (a) In General.--The Secretary, in consultation with the 
Commissioner of Internal Revenue, shall establish and implement a 3-
year pilot program (hereinafter referred to as the ``program'') to 
provide a guaranteed monthly income to certain eligible individuals in 
accordance with this section.
    (b) Income Subsidy.--
            (1) Selection of participating eligible individuals.--The 
        Secretary, in consultation with the Commissioner and the 
        external partner selected pursuant to subsection (d), shall 
        develop selection criteria that the Secretary will use to 
        select 12,000 total eligible individuals for participation in 
        the program.
            (2) Amount of income subsidy.--Of the eligible individuals 
        participating in the program, 6,000 shall receive a cash 
        payment each month equal to the fair market rent for a 2-
        bedroom home in the zip code in which the eligible individual 
        resides, or a substantially similar amount as determined by the 
        Secretary, in consultation with the Commissioner and the 
        external partner.
            (3) Monthly distribution of income subsidy.--Each 
        participating eligible individual shall receive the cash 
        payment on the 15th day of each month.
    (c) Responsibilities of Commissioner of Internal Revenue.--The 
Commissioner of Internal Revenue shall be responsible for--
            (1) providing the Secretary access to tax records to 
        administer and study the program under this section;
            (2) updating the Secretary and the external partner on 
        changes to the taxable income of a participating eligible 
        individual.
    (d) External Partner.--
            (1) Selection.--The Secretary shall select an external 
        partner to provide assistance with the design, administration, 
        and evaluation of the program.
            (2) Qualifications.--An organization selected to be the 
        external partner shall have demonstrated experience in--
                    (A) mixed-methods experimental design; and
                    (B) implementing cash-transfer programs.
            (3) Confidentiality.--The external partner, and any 
        employee of the external partner, shall be treated as a Federal 
        employee for purposes of section 6103 of the Internal Revenue 
        Code of 1986.
            (4) Data collection.--The external partner shall collect 
        data from participating eligible individuals as necessary to 
        complete the study and reports required under section 4, and to 
        conduct any additional research as the Secretary determines 
        necessary.
    (e) Disregard of Cash Payments for Purposes of All Federal and 
Federally Assisted Programs.--Notwithstanding any other provision of 
law, any payment made to participating eligible individuals under this 
section shall not be taken into account as income, and shall not be 
taken into account as resources for a period of 12 months from receipt, 
for purposes of determining the eligibility of such eligible individual 
(or any other individual) for benefits or assistance (or the amount or 
extent of benefits or assistance) under any Federal program or any 
State or local program financed in whole or in part with Federal funds.

SEC. 4. STUDY AND REPORT.

    (a) Study on Pilot Program.--The Secretary, in collaboration with 
the Commissioner and the external partner, shall conduct a study on 
outcomes of the program.
    (b) Interim Report.--Not later than 24 months after participating 
eligible individuals have been begun participating in the program, the 
Secretary, in consultation with the Commissioner of Internal Revenue 
and the external partner, shall provide an interim report on the 
program under section 3 to the Congress.
    (c) Final Report.--Not later than 12 months after the conclusion of 
the program under section 3, the Secretary, in consultation with the 
Commissioner of Internal Revenue and the external partner, shall 
provide a final report on the program to the Congress, including an 
analysis of--
            (1) the effect of the monthly income subsidy provided in 
        section 3 on--
                    (A) micro-economic outcomes of participating 
                eligible individuals;
                    (B) the health of participating eligible 
                individuals;
                    (C) the social costs of income volatility, 
                including connections with income fluctuation and 
                health, education, employment, childcare, and other 
                outcomes as determined appropriate by the Secretary; 
                and
            (2) the feasibility of expanding the program under section 
        3 to include a larger number of participants.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of the Internal Revenue Service.
            (2) Eligible individual.--The term ``eligible individual'' 
        means an individual taxpayer between the ages of 18-65.
            (3) External partner.--The term ``external partner'' means 
        a non-partisan research agency or a non-profit academic 
        institution with expertise in social science experimentation.
            (4) Fair market rent.--The term ``fair market rent'' means 
        the applicable fair market rent established under section 8(c) 
        of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$285,000,000 for each of the fiscal years 2022 through 2025.
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