Evanston, Illinois became the first city in America to approve reparations five years ago.
The city has paid out over $6.3 million to 254 people based on race.
Now officials are sending another $25,000 to 44 Black residents – while admitting they don't know how they'll keep the program funded.
Reparations Fund Runs Dry as Cannabis Tax Revenue Falls Short
The city promised $10 million over ten years when they launched this program in 2019.
They funded it with a 3 percent marijuana sales tax and real estate transfer fees.
But the reparations fund received zero philanthropic donations in 2025.
Alderman Krissie Harris admitted last week they can only pay "as we have the money."
City officials are now floating the idea of taxing Delta-8 THC products to keep payments flowing.
Harris acknowledged the tax won't generate serious revenue but said it would "help keep moving that number forward."
Judicial Watch Lawsuit Claims 14th Amendment Violation
Judicial Watch filed a federal lawsuit against Evanston's program in 2024.
The organization represents six plaintiffs whose ancestors lived in Evanston between 1919 and 1969 – the same period that qualifies Black residents for payments.
None of the plaintiffs are Black, so the city denies them benefits.
Tom Fitton's charge is straightforward – the program violates the Equal Protection Clause of the 14th Amendment.
"To date, Evanston has awarded over $6,350,000 to 254 individuals based on their race," Fitton said.
"The city must be stopped before it spends even more money on this clearly discriminatory and unconstitutional reparations program."
A federal court hearing is scheduled for May 7, 2026.
The city filed a motion to dismiss.
San Francisco Faces Identical Constitutional Challenge Over $5M Program
San Francisco created a reparations fund in December 2025 without allocating a single dollar.
Mayor Daniel Lurie signed the ordinance on December 23, 2025.
The city's advisory committee recommended $5 million payments per eligible Black resident, plus debt forgiveness, 250 years of tax abatements, and guaranteed annual income.
The estimated cost? $50 billion.
San Francisco's entire annual budget is $14 billion – and they're running a $1 billion deficit.
Lurie stated: "We are not allocating money to this fund – with a historic $1 billion budget deficit, we are going to spend our money on making the city safer and cleaner."
Reverend Amos C. Brown, a member of the advisory committee, wrote that "an apology without action and a fund without allocation are not reparations."
The Pacific Legal Foundation filed a lawsuit on February 5, 2026 – identical argument to Judicial Watch.
The reparations program violates the Equal Protection Clause by discriminating based on race.
The Pattern Across America
Evanston's program launched with fanfare in 2019.
Robin Rue Simmons, the city councilwoman who pushed it through, brought actor Danny Glover to a town hall with 700 people.
They sold it as addressing housing discrimination from 1919 to 1969 when city policies forced Black residents into one segregated ward.
But recipients don't have to prove individual harm.
They only need to prove they're Black and either lived in Evanston during those decades or descend from someone who did.
That's wealth redistribution based purely on race – exactly what the 14th Amendment prohibits.
Cities like Asheville and others launched similar efforts after George Floyd's death in 2020.
Most remain in the "study" phase because the constitutional problems are obvious.
Evanston jumped first, and now they're discovering what happens when you promise payouts funded by weed taxes.
The Supreme Court struck down affirmative action in college admissions in 2023.
Justice Clarence Thomas wrote that the 14th Amendment "ensures racial equality with no textual reference to race whatsoever."
Conservative legal groups are systematically challenging every race-based government program.
An Atlanta business grant program for Black women got blocked by the 11th Circuit Court of Appeals.
A Cook County small business grant program got struck down on 14th Amendment grounds.
Minneapolis attempted to give union protections based on race – Judicial Watch sued.
The principle is simple: you cannot use taxpayer money to discriminate based on race, even when claiming to correct past discrimination.
Evanston thought they'd be celebrated as trailblazers.
Instead, they're $6.3 million into a program they can't afford, facing federal lawsuits they'll likely lose, and considering Delta-8 taxes to keep the checks flowing.
Sources:
- Joshua Q. Nelson, "Illinois city hands out $25K cash payments to 44 Black residents through reparations program," Fox News, February 10, 2026.
- "Federal Court Hearing Set in Civil Rights Class Action Lawsuit Against Reparations Program," Judicial Watch, May 2, 2025.
- "San Francisco Establishes Reparations Fund for Black Residents Amid Budget Constraints," Virtue News, January 1, 2026.
- Amos C. Brown, "On reparations for Black residents, the time for action in San Francisco is now," San Francisco Chronicle, December 23, 2025.
- "San Francisco taxpayers sue over race-based reparations ordinance," Pacific Legal Foundation, February 5, 2026.
- Clarence Thomas, concurring opinion, Students for Fair Admissions v. Harvard, June 29, 2023.