Chicago Unveils $12.5M Program to Provide Transportation Cost Relief to Residents

CHICAGO — Chicago will become the first major city in the United States to launch a financial assistance program designed to provide relief for residents struggling with transportation expenses. On March 31, Mayor Lori Lightfoot announced Chicago Moves, which seeks to help combat spiking costs of gas and rising inflation by providing $12.5 million in relief funding for disadvantaged Chicagoans.

Chicago Moves will comprise $7.5 million earmarked for $150 physical prepaid cards eligible for redemption at local Chicago gas stations, as well as $5 million earmarked for $50 prepaid cards eligible for use on public transit.

"The last two years have been exceedingly difficult for many of our residents, in particular our most vulnerable populations. Through the pandemic, we have collectively faced tragedy, and many among us have faced accompanying economic hardship. Now, as inflation steadily rises and the cost of gas continues to soar, our disadvantaged residents are carrying a significant financial burden," Lightfoot said. "Chicago Moves endeavors to provide much needed relief and ease some of this pain. By subsidizing the cost of gas and transit, this program will enable participants to save their resources for other critical expenses. Chicago is a city that moves. People have to be able to get to work, school, places of worship, medical offices, grocery stores. The goal of this program is to help make those moves easier."

"This is a huge step toward making Chicago more accessible to those having to choose between gas, a ride on the [Chicago Transit Authority] or the grocery store. Especially for essential workers who do not have the choice to work remotely, this is a way to provide many folks relief as they commute to work each day," added Chicago City Clerk Anna Valencia. "I look forward to continuing this partnership with Mayor Lightfoot and our city's leaders to help those experiencing economic hardship breathe a sigh of relief."

Recent data from AAA and the Center for Neighborhood Technology shows that Chicagoans are now paying an average of 4.5 percent of their annual income at the pump, compared to 3.1 percent one year ago. This 1.4 percent increase is consistent with statewide trends in Illinois, where the cost of gas has risen approximately $1.45 per gallon year-over-year, as well as with nationwide trends, which indicate the cost of gas has increased by $1.38 per gallon on the year.

The city is partnering with Fifth Third Bank and Onbe, a corporate disbursements fintech company, to provide the physical prepaid cards and payment processing for the program with no transaction fees, which enables the entirety of the program funding to be provided directly to residents.

"Fifth Third Bank is pleased to support the City of Chicago and those eligible for Chicago Moves. We recognize the importance of the role we play in our communities, especially in the most challenging of times," said Mark Hoppe, regional president of Fifth Third Bank, Chicago.

"Together with Fifth Third, we're offering the City of Chicago a faster, more strategic way to distribute funds to residents," said Bala Janakiraman, CEO of Onbe. "The City of Chicago can expect a seamless payments experience that ensures Chicago residents quickly receive their cards with no transaction fees. As active members of the Chicago community, we're pleased to lend our expertise to the Chicago Moves program."

PROGRAM DETAILS

Up to 50,000 prepaid cards of $150 will be distributed to eligible residents via a lottery system. The cards are valid for one year after receipt and may only be spent on the cost of fuel at gas stations located within Chicago. Applications are limited to one per household.

Starting in May, the cards will be distributed in five successive monthly waves of 10,000 residents.

To be eligible for these cards, applicants must:

• Be residents of Chicago
• Be at least 18 years old
• Have a current and valid City sticker with correct mailing information for their vehicle
• Have a household income at or below 140 percent of the area median income for Chicago

The city will also distribute or add value to 100,000 cards in the amount of $50 for use on public transit. Of these cards, 75,000 will be distributed based on geographic data, prioritizing high CTA-utilizing residents in low-income neighborhoods. An additional 25,000 transit cards will be distributed citywide.

"The CTA remains the most affordable and convenient way to get around the city, and we work hard every day to provide the essential service that so many Chicagoans rely on — especially when public transit is the only option," said CTA President Dorval R. Carter, Jr. "Public transit is key to the city's recovery from the pandemic, and as workers begin returning to the office and residents return to their routines, our trains and buses are ready to get them there."

To be eligible for these cards, applicants must be residents of Chicago and have a household income at or below 140 percent of the area median income for the city.

"Surging costs are making it harder for our neighbors to make ends meet. Regardless of what global forces are at play, we are heartened by local efforts to meet the urgent financial needs of the community," said Director of Economic Security for Illinois Harish I. Patel. "We know that the best form of support — especially when the need is urgent — is direct cash. ESIL fully supports the City of Chicago's plan to provide prepaid transit and physical prepaid cards to low-income Chicagoans, alongside other policies that invest directly in families, workers, and neighborhoods."

"This is certainly a step in the right direction. It will encourage more people to use public transportation and reduce carbon emissions," said Benjamin de la Peña, CEO of the Chicago-based Shared-Use Mobility Center. "This shows promise that future city policy will be focused even more on shared mobility — bikes, shared cars and ride-hailing — that can assist household budgets and help end our addiction to fossil fuels."

Applications for Chicago Moves will open on April 27, 2022. More information will be made available pending City Council approval.