The provincial government is facing a class action lawsuit seeking $200 million in damages for the early termination of a basic income pilot project in three cities across Ontario.

On March 4, the Ontario Superior Court of Justice certified the lawsuit filed by Cavaluzzo LLP on behalf of 4,000 proposed class members, with the plaintiffs arguing that the cancellation of the program amounts to a breach of contract.

In 2017, the Ontario government launched a three-year basic income pilot program for low-income residents in Hamilton, Lindsay, and Thunder Bay. The purpose of the research study was to determine whether the government should consider providing a guaranteed income.

4,000 people enrolled in the pilot program completed regular surveys and provided personal information to researchers. In return, individual participants received slightly less than $17,000 annually, while couples received just over $24,000.

After one year, following elections and a change in government, the province suddenly announced it would terminate the pilot program. The final payment date was set for March 25, 2019.

At that time, the government claimed the program did not help people contribute to the economy and discouraged them from getting back on track; the class alleges the province's motive was "unjust enrichment."

The program's cancellation was "devastating" for applicants, according to court documents dating back to 2019. "As a result of the cancellation, their future became at risk, and their health deteriorated."

Dana Bowman, 57, who suffers from long-term disabilities, had planned to advance her education toward a career in social work, which was financially impossible with Ontario’s disability support program.

Grace Hélion, a 20-year-old student at Durham College, had planned to pay her tuition and continue her college education, which was jeopardized due to financial difficulties.

The Ontario government has not commented on the class action as it is in the appeal period, making it "inappropriate" to do so. However, the province argued in court filings that the class action would not be fair, efficient, or manageable—a request denied by Chief Justice Stephen T. Bell.

"The lawyer argued that filing 4,000 claims in small claims court would be the preferred procedure," Bell wrote. "I do not agree."

To join the class action, individuals who participated in the program can fill out a form on the Cavaluzzo LLP website to determine their eligibility.