Texas Court Temporarily Halts Harris County Guaranteed Income Program

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The 15th Court of Appeals has temporarily blocked Harris County’s guaranteed income program called the Community Prosperity Program from proceeding, pending the resolution of an appeal filed by the State of Texas. This injunction follows a motion from Texas Attorney General Ken Paxton to halt the program, which is designed to provide monthly payments to selected participants. The court’s order prevents Harris County officials from distributing funds under the program until the appeal is resolved.

The program was challenged by the state on legal grounds, with the Attorney General’s office questioning the program’s authorization under Texas law. The court’s ruling also expedites the appeal process, requiring all briefs to be filed within an accelerated timeline to ensure a prompt resolution.

The court’s ruling emphasized its authority to preserve jurisdiction while an appeal is pending. It ordered Harris County and its officials to refrain from distributing any funds under the Community Prosperity Program during the appeal process. The appeal itself will proceed on an expedited schedule, with deadlines for briefs set to ensure the case progresses without delays. The injunction is temporary, pending further rulings from the appellate court.

The court dismissed other motions for temporary relief and administrative stays as moot, given that the injunction sufficiently maintains the status quo. The expedited timeline reflects the court’s intention to resolve the case efficiently.

This injunction is the second legal challenge to Harris County’s attempts to implement guaranteed income programs. Attorney General Ken Paxton previously filed a lawsuit to block another guaranteed income initiative earlier this year, arguing that such programs lack constitutional or statutory authorization. In the current case, the state contends that the Community Prosperity Program represents an unauthorized use of taxpayer funds.

In a statement, Paxton said,

“Harris County is not above the law and cannot ignore the Texas Constitution,. They made a blatant attempt to end-run a Texas Supreme Court ruling by duplicating their unlawful handout program, and we have successfully blocked them yet again.”

Source: Statement by Texas Attorney General Ken Paxton, 12.13.2024

Guaranteed income programs have been a contentious issue in Texas, with critics questioning their legal basis and proponents advocating for their potential to address economic hardships. The current legal challenge centers on whether such programs align with state laws governing the use of public funds.

Legislative Context and Proposed Ban

This case occurs against the backdrop of broader legislative efforts to regulate guaranteed income programs at the local level. As detailed in our recent analysis of Texas’ proposed ban on local guaranteed income programs, state lawmakers are considering measures to prohibit such initiatives unless explicitly authorized by state law. The proposed legislation highlights concerns about the financial implications of these programs and the need for uniformity in how public funds are used across Texas.

Republican lawmakers State Rep. Ellen Troxclair (Lakeway) and State Sen. Mayes Middleton have both filed legislation to pre-empt local governments from implementing such programs ahead of the upcoming 89th Legislative Session, which is set to begin in January 2025.

Harris County’s efforts to implement guaranteed income initiatives have drawn attention to the legal and fiscal questions surrounding these programs. The current legal dispute may influence future legislative action on this issue.

Implications of the Ruling

The court’s decision to block the Community Prosperity Program has immediate and broader implications. For Harris County, the ruling temporarily halts the program while the appeal proceeds, ensuring no funds are distributed under its provisions. For other local governments, the case may serve as a precedent, signaling that guaranteed income programs must adhere to state laws and regulations.

The appeal will proceed on an expedited schedule, with both sides required to file their briefs within a matter of weeks. The court’s ruling does not determine the ultimate legality of the Community Prosperity Program but maintains the status quo until a decision is made. The outcome of this case may have significant implications for the future of guaranteed income programs in Texas.

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