Board approves settlement in lawsuit over San Franciscos transgender guaranteed-income pilot despite objections

On Dec. 3, 2024, the San Francisco Board of Supervisors voted to authorize a settlement in a lawsuit challenging the citys pilot guaranteed-income program for low-income transgender residents. The ordinance authorizing the settlement passed on first reading with seven votes in favor and three opposed.

The settlement, described to the board by staff as partial, would include payment of attorney fees and costs and injunctive relief. According to the settlement memo read into the record, the proposed terms include payment of approximately $3,250 in attorneys fees and costs and entry of injunctive relief that would limit future city efforts to create a targeted basic-income program for transgender residents.

Supervisor Dean Preston said he would vote no, arguing the injunction would improperly limit future policy choices. "Under the settlement, the city would agree to entry of a court injunction that limits in perpetuity future city efforts to establish a basic income program for trans people," Preston said. "I believe it would be a mistake to agree to injunctive relief in this case." He added that the underlying pilot program had concluded and that he was concerned about tying the hands of future elected officials: "I will be voting no on this settlement."

Supervisor Hillary Ronan spoke in favor of approving the settlement after consulting the city attorney and reviewing the settlement memo. Ronan framed her support as an effort to avoid further legal costs and said the city will continue to support transgender residents in other ways. "This is not a weak move to OK this settlement agreement, quite to the contrary," Ronan said, while also criticizing the program's initial design.

The roll call reflected three "no" votes from supervisors Walton, Peskin and Preston; the seven "aye" votes carried the ordinance on first reading. The item had been forwarded to the full board without recommendation from the Government Audit and Oversight Committee.

The board record shows members debated both legal strategy and the policy consequences of consenting to injunctive relief that would restrict future narrowly targeted basic-income programs. The city attorneys office prepared the settlement memo the board reviewed prior to the vote.

Next steps: Because the ordinance passed on first reading, it will return for final passage as required by the boards rules. The settlement itself is being authorized retroactively by this ordinance; the transcript does not indicate any additional implementation steps or dates beyond what was in the settlement memo.

Votes (selected): 7 ayes, 3 nos. Supervisors Walton, Peskin and Preston voted no.