The Community Prosperity Program will provide select residents with a preloaded debit card for housing, medical care, groceries, and other essential needs.
This new guaranteed income program comes after the state filed a restraining order against a previous version, called "Uplift," which sent out monthly $500 payments to low-income residents.
The state blocked Uplift, claiming it violated a law that prohibits giving away public money as gifts.
The state also attempted to stop the Community Prosperity Program, but the 165th District Court denied the request after reviewing arguments from the Texas Attorney General's Office and the Harris County Attorney's Office.
The new program will financially support select families living at or below 200% of the federal poverty line.
Although Uplift had fewer spending restrictions, the Texas Supreme Court influenced new limitations, restricting participant purchases to essential needs.