Introduction
As we move through 2025, American policymakers and industry leaders are tackling two significant shifts happening side by side: cash assistance programs like Universal Basic Income (UBI) and car insurance that charges based on actual driving habits through telematics technology. I've put together this overview that covers everything from federal proposals to state definitions, pilot programs, and restrictions on UBI, along with important bills about telematics in insurance, consumer protections, public opinion, and statistical trends. My aim is to give finance, insurance, and automotive industry professionals a clear picture of how regulations are evolving across national, state, and local levels.
Definitions & Frameworks for UBI and Telematics-Based Legislation
Federal and State Definitions of UBI
- Federal Proposals: Congress hasn't passed a comprehensive UBI law yet, but H.R.2475 (Youth Homelessness Guaranteed Income Pilot Program Act of 2025) would give targeted cash payments to young adults experiencing homelessness.[U.S. Congress, 2025]
- New York (S7291): Defines UBI as "unconditional cash payments of equal amounts... ensuring economic security; not counted as income for other benefits."[New York Senate, 2025]
- Illinois (SB2227): Outlaws "a government program that provides... direct, recurring cash payments... without qualification or restriction." The law specifically exempts existing welfare and social assistance programs.[Illinois General Assembly, 2025]
- NCSL Economic Mobility Database: Broadly describes UBI as direct cash assistance given to eligible residents without conditions.[NCSL, 2024]
Distinction: UBI vs. Guaranteed Income vs. Welfare
- Universal Basic Income: Regular cash payments given to everyone without conditions, regardless of their status or need.
- Guaranteed Income: Usually targeted payments for specific groups (like families with children or young adults leaving foster care).
- Welfare: Aid based on testing for income levels, employment status, disability, or other qualifying factors.
Telematics & Usage-Based Insurance (UBI)
- Definition: Telematics systems gather information about driving behavior (miles driven, speed, braking habits, time of day, location, how quickly you accelerate) to set insurance prices based on actual risk.
- Regulatory Gap: So far, no state UBI legislation has directly addressed telematics programs, though insurance codes increasingly mention "usage-based insurance."
State-by-State Overview of UBI Legislation
Enacted or Proposed UBI Pilots
New York
- S6148 (2025-26): Study to determine if statewide UBI is feasible
• $7,200/year for individuals earning less than $80,000
• $14,400/year for couples earning less than $80,000
• Findings due to the Governor and legislative leaders within a year - S7291 (2025-26): Pilot program for young adults aging out of foster care
• $1,000 monthly payments
• Running from January 2026 through December 2029
Connecticut
- HB06841 (2025): Creates a pilot UBI program and establishes a working group to study statewide implementation
• Passed committee vote 13-4 and referred to joint committees
• Payment amounts and program duration will be determined in upcoming reports
Table 1. Summary of UBI Pilot Bills
| State | Bill | Target Group | Payment | Timeline |
|---|---|---|---|---|
| New York | S6148 | Statewide low- to middle-income | $7,200 indiv./$14,400 couples | Study due in 12 months |
| New York | S7291 | Foster-care leavers | $1,000/month | 2026–2029 |
| Connecticut | HB06841 | Statewide pilot & study group | TBD | Pending |
Prohibitions on UBI or Guaranteed Income
Illinois (SB2227)
- Prohibits any unconditional, universal UBI program at both state and local levels
- Specifically exempts welfare and existing social assistance programs
Florida (SB1193, 2025)
- Blocks counties and cities from creating guaranteed income programs
- Defines "guaranteed income" as regular cash payments without conditions
- Enforcement by the state Attorney General; becomes effective October 1, 2025
Table 2. Summary of UBI/Guaranteed Income Prohibitions
| State | Bill | Scope | Effective Date |
|---|---|---|---|
| Illinois | SB2227 | State/local UBI ban | Upon enactment |
| Florida | SB1193 | Local guaranteed income ban | Oct 1, 2025 |
Telematics-Tracking Bills in Insurance
Market & Technology Overview
- Market Growth: Valued at $43.4 billion in 2024; expected to reach $70.5 billion by 2030 (growing about 8% annually).
- Data Captured: Miles driven, speed, braking patterns, acceleration, location, time of day.
Regulatory Considerations
- NAIC Initiatives: In January 2025, consumer advocates asked the NAIC Property & Casualty Committee to provide guidance, gather telematics data, and publish a detailed report on usage-based insurance.[NAIC, 2025]
- Consumer Benefits:
- More precise risk-based pricing
- Encouragement for safer driving habits
-
Less reliance on socioeconomic factors
-
Key Concerns:
- Privacy and security of personal data
- Transparency and accountability issues
- Boundaries on what data can be collected and how it's used
Common Legislative Provisions
- Calibration & Accuracy: Rules requiring proper maintenance of devices and verification of data.
- Opt-In vs. Mandatory: Different states have different requirements about getting consumer consent.
- Data Ownership & Sharing: Insurance companies must disclose how they use data; sharing of data is subject to the Fair Credit Reporting Act and regulatory oversight.
Consumer Protections & Privacy Safeguards
Transparency & Consent
- Insurers need to explain what driving information they collect and how it affects your premium.
- Clear, informed consent is required before collecting or using your data.
Data Minimization & Use Restrictions
- Data should only be used for insurance rating and policy management.
- Companies can't sell or profit from your driving data for non-insurance purposes.
- Each piece of data collected must have actuarial justification.
State Examples
- Alabama, Iowa, Utah: Have adopted some UBI/telematics provisions focusing on disclosure and protecting consumer rights.
- Emerging Privacy Laws (2025): Delaware, Iowa, Nebraska, New Hampshire, New Jersey, Tennessee, Minnesota, and Maryland have passed comprehensive privacy laws that will likely affect how telematics data is managed.
Trends, Controversies & Public Sentiment
Support & Opposition in UBI Initiatives
- Strong backing from legislators in New York and Connecticut; limited public testimony on record.
- Advocacy groups support targeted pilot programs; broader UBI proposals face both financial and philosophical objections.
Debates in Telematics
- Opt-In vs. Mandatory: Grassroots organizations and privacy advocates argue that enrollment should be voluntary.
- Privacy & Discrimination: Worries about data misuse and biases in algorithms that could unfairly impact insurance premiums.
Demographic & Regional Variations
- The youth pilot program in New York reflects priorities common in urban, progressive areas.
- Rural and more conservative communities tend to be more skeptical about universal cash transfers and telematics tracking.
Statistical Overview of UBI Pilots
Pilot Program Metrics
- About 136 guaranteed income pilots across the U.S. (74 completed; 62 still running).[Stanford Basic Income Lab, 2025]
- Most run for 12-25 months with monthly payment distributions.
Funding & Scale
- Programs use public funding, private funding, or a mix of both.
- The number of participants ranges from just a dozen individuals to thousands of people.
Outcomes & Impacts
- Employment: The Alaska Permanent Fund Dividend has been linked to a 1.8 percentage point increase in part-time work, with no overall job loss.[Economic Journal, 2024]
- Education: Canada's Mincome trial boosted high-school completion rates by 25-30%.
- Economic Growth: Models from the Roosevelt Institute predict higher output, employment, and wages under various UBI scenarios.
Conclusion & Future Outlook
The regulatory landscape for both UBI and telematics-based insurance is constantly changing. States are trying out targeted pilot programs and sometimes prohibiting cash-transfer programs, while insurance companies and regulators fine-tune rules for usage-based pricing. Key developments to watch include:
- Growth of federal or state UBI definitions and pilot programs
- The NAIC's upcoming report and model guidelines for telematics
- How new comprehensive privacy laws will affect telematics data
- Ongoing evaluation of pilot programs to shape future policy
Continued teamwork among policymakers, industry stakeholders, and consumer advocates will be crucial to balance innovation with fiscal responsibility and consumer protection.
References
Florida Senate. (2025). SB 1193: Prohibition on guaranteed income programs. Retrieved from https://www.flsenate.gov/Session/Bill/2025/1193
Illinois General Assembly. (2025). SB 2227: Universal Basic Income Prohibition Act. Retrieved from https://legiscan.com/IL/text/SB2227/2025
National Association of Insurance Commissioners. (2025). Letter to NAIC Property and Casualty Insurance Committee on telematics. Retrieved from https://consumerfed.org/wp-content/uploads/2025/01/Letter-to-NAIC-Property-and-Casualty-Committee-on-Telematics.pdf
National Conference of State Legislatures. (2024). Economic Mobility Legislation Database. Retrieved from https://www.ncsl.org/human-services/economic-mobility-legislation-database
New York Senate. (2025a). S6148: Feasibility study on universal basic income. Retrieved from https://www.nysenate.gov/legislation/bills/2025/S6148
New York Senate. (2025b). S7291: Universal Basic Income for Transition-Age Youth Pilot Program. Retrieved from https://www.nysenate.gov/legislation/bills/2025/S7291
Roosevelt Institute. (2024). Modeling the economic effects of universal basic income. Retrieved from https://rooseveltinstitute.org
Stanford Basic Income Lab & Center for Guaranteed Income Research. (2025). Guaranteed Income Pilots Dashboard. Retrieved from https://guaranteedincome.us
U.S. Congress. (2025). H.R.2475: Youth Homelessness Guaranteed Income Pilot Program Act. Retrieved from https://www.congress.gov/bill/119th-congress/house-bill/2475