As part of the ongoing Minneapolis Guaranteed Basic Income Pilot program, the next Stimulus Check payment to recipients is being processed today. Scheduled to be sent on June 20, this payment is a part of the program that commenced in June 2022 and will continue providing monthly cash payments to recipients until June 2024. The program has selected two hundred households to receive these payments, allowing them the freedom to utilize the $500 payments in the manner that best suits their needs, as stated on the city’s website.
According to the project manager, the payments for the Stimulus Check program are processed on the 20th of each month, ensuring that all participants receive a fixed amount of $500 every month. The Federal Reserve Bank of Minneapolis is actively evaluating the program, as confirmed by the project manager. Additionally, approximately one-third of the households receiving funds from this program consist of a single individual, emphasizing the prevalence of single-person households as recipients.
Monthly Payments Stimulus Check of $500 Provided in Minneapolis Guaranteed Income Program
To be eligible for this program, applicants were required to meet specific criteria. They had to be 18 years old or older by January 1, 2022, with an annual income at or below 50% of the area median income for Minneapolis. Additionally, applicants had to reside in specific zip codes specified by the program. Furthermore, they needed to demonstrate that they were adversely affected by the coronavirus pandemic, such as experiencing job loss, incurring higher healthcare expenses, or facing challenges with accessing child care.
The program’s recipients reflect a diverse range of backgrounds, with 80.5% identifying as black, indigenous, or people of color, while the remaining 19.5% identify as white or non-Hispanic. Furthermore, women comprise 69% of all program recipients, highlighting gender diversity. Among the recipients, 42.5% fall within the age group of 30 to 39, indicating a significant presence of individuals in their thirties benefiting from the program.
Comparison of the Minneapolis program with other guaranteed income pilots in the US
The Minneapolis guaranteed basic income (GBI) pilot program provides $500 per month for 24 months to approximately 200 households. The program is part of the city’s Economic Rebuilding portion of their American Rescue Plan funds. The program is open to households living in certain ZIP codes and who have an annual income at or below 50% of the Area Median Income (AMI) for Minneapolis.
The Minneapolis GBI pilot program is one of many such programs across the United States. Other cities that have established or are planning such a program include St. Paul, Chicago, and Oakland. While the Minneapolis program is still in progress, early results from other programs are promising. For example, the Stockton Economic Empowerment Demonstration (SEED) program in California showed that recipients used the money to pay off debt, purchase necessities, and invest in their education or business.
What is the duration of the Minneapolis Guaranteed Basic Income Pilot program?
The Minneapolis Guaranteed Basic Income Pilot program will run for two years, from June 2021 to June 2023, and will provide monthly payments of up to $500 to 200 low-income families without any conditions on how the money is spent.
What other cities have established or are planning a Guaranteed Basic Income program?
There are 33 active or recently active guaranteed income programs in the US. The first statewide guaranteed income program in the US was launched in California, which provides up to $1000 per month to qualifying pregnant people and young adults leaving the foster care system. Meanwhile, the Stockton Economic Empowerment Demonstration, launched in Stockton in 2019, has been considered the model for other cities that have followed in its footsteps. Other cities that have established or are planning a Guaranteed Basic Income program include:
- Los Angeles, California (Basic Income Guaranteed: LA Economic Assistance Pilot)
- Gary, Indiana (Guaranteed Income Validation Effort)
- Shreveport, Louisiana
- Providence, Rhode Island
- Austin, Texas
- San Antonio, Texas
- Minneapolis, Minnesota
- Saint Paul, Minnesota
- St. Louis, Missouri