Pre- and postpartum mothers in Illinois would receive cash under a new plan unveiled Wednesday by progressive Democrats. [Health News Illinois]

The plan from Rep. Kelly Cassidy, D-Chicago, and Sen. Graciela Guzmán, D-Chicago, would establish a state-funded program that would give eligible mothers a lump sum payment of $1,500 during the third trimester of pregnancy, and $500 per month for the first six months of a child’s life.

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The program would cover those either enrolled in or eligible for Medicaid.

Guzmán said the program is modeled after a similar one operated in Michigan. The Michigan program launched statewide in 2025 at a $270 million cost.

“We need our legislators to also understand the pains that our families are going through, how much these dollars would make a meaningful difference in each of your lives,” she said during a rally in Springfield.

The program would be administered by the Department of Human Services. 

While Illinois faces a difficult budgeting session, Sarah Saheb, director of Economic Security Illinois Action, argued the initial investment in the program will save the state and its residents over $140 million in Medicaid costs associated with preterm and low-birthweight births.

“By putting cash directly in their hands, we can improve birth outcomes, reduce health care costs, and make Illinois the best place in the country to start a family,” she said.

A spokesman for Economic Security Illinois Action did not say how much they expect the program to cost, as it could be scaled up based on investment. He noted the Michigan program began as a pilot in the city of Flint.

Saheb said they have spoken with Gov. JB Pritzker’s office about the program. She did not disclose whether there is support, but said they are aware of the Michigan program.

The program was not part of Pritzker’s budget proposal released last week.

Additionally, advocates are also backing a plan from Sen. Omar Aquino, D-Chicago, and Rep. Mary Beth Canty, D-Arlington Heights, to decouple the state’s child tax credit from federal restrictions, a move they said will ensure the lowest-income families can receive the full benefit.

“Too many eligible families are only receiving a fraction of the benefit because of outdated federal income rules that penalize parents,” Aquino said. “This bill would remove unnecessary barriers so that every eligible family can receive the full benefit they deserve and ensure the program reaches every family it was meant to serve.”

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