Paxton sues Harris County again over guaranteed income program

Despite the Texas Supreme Court twice ruling this year that Harris County could not implement a guaranteed income program, Democrats on the county commissioner’s court created another program under a different name to implement the same scheme.

Attorney General Ken Paxton on Thursday sued the county again, arguing its officials were in violation of the Texas Supreme Court’s ruling.

“Harris County acts as though the Texas Constitution does not apply to them and as though they do not have to abide by the Texas Supreme Court’s rulings,” Paxton said. “Using public funds in this way directly violates the law. Harris County is willing to undermine the legal process out of apparent desperation to push this money into certain hands as quickly as possible.”

The lawsuit was filed in a Harris County district court and names the county judge, commissioners and county public health director as defendants.

Harris County first announced its “Uplift Harris” program in June 2023 to use $20.5 million in COVID-19 relief money it received through the 2021 American Rescue Plan Act to "provide no-strings-attached $500 monthly cash payments to 1,928 Harris County residents for 18 months." The Democratic-controlled Harris County Commissioner's Court approved the program despite the federal government stipulating that the funds could only be used for COVID-19-related programs.

In January, state Sen. Paul Bettencourt, R-Houston, sounded the alarm, saying the program is illegal and requested Paxton to issue a formal opinion. He cited the Texas Constitution, which prohibits “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 sued in April to stop the program. In April, the Texas Supreme Court first halted the program as litigation continued. It permanently halted it in June and prohibited any payments be made through the fund.

Two months later, on Aug. 15, the Harris County Commissioners Court voted to move forward with a new program, the “Harris 2.0 Handout” program. This includes a few modifications from the original Harris Handout created through Uplift Harris but with significantly higher administrative costs of $400,000.

In response to the sole Republican on the court opposing the program, saying it implements the same program the Texas Supreme Court said was illegal, Harris County Judge Lina Hidalgo said, "That's why this is Uplift Harris 2.0, not Uplift Harris, but it is a way for us to keep our promises to these families."

Anticipating the state would again sue to stop Harris 2.0, Hidalgo said, "If the state gets in the way of this and the program becomes stuck in court again, then the funds would be reallocated to programs that already exist to support people living in poverty."

Harris 2.0 would allocate the $20.5 million in ARPA money to the same qualified individuals as Uplift Harris: those living in 10 zip codes with the highest poverty levels. Under the new plan, they’d also receive $500 per month for 18 months as they would have under the old plan.

“Harris County intends to reenroll all previously selected participants” in the Uplift Harris program, the brief states, giving them “a reloadable debit card with limited spending categories.”

The lawsuit argues Harris 2.0 Handout is illegal and violates several sections of the Texas Constitution and state government code in the same way the first program under a different name did.

“In addition to being unconstitutional,” the lawsuit argues, county officials “lack any legal authority – constitutional or statutory – to create and implement the Harris 2.0 Handout.”

In response to the lawsuit, Harris County Attorney Christian Menefee said the county would defend the new program in court. It "incorporated guidance from the Texas Supreme Court by limiting the categories of items participants could purchase with the funds." He also said opposition to the program "is not about concern for the law; it’s about using people living in poverty as a means to score political points."