Minneapolis Launches Guaranteed Basic Income Pilot Program

MINNEAPOLIS — The city of Minneapolis Thursday launched a Guaranteed Basic Income (GBI) pilot program. The program will provide 200 participating families with an income boost of $500 per month for 24 months "to support household financial growth and stability," officials said.

The program is being funded with $3 million from the American Rescue Plan Act, which was passed by Congress earlier this year.

"The pandemic has exacerbated racial economic disparities in Minneapolis and the communities most impacted have been front and center in the creation of the Minneapolis GBI program," Frey said in a news release.

"We used a data-driven approach to create this pilot and get cash assistance in the hands of families that need it most in their time of need. This illustrates our continued commitment to directly supporting the unique needs and individual situations facing the most vulnerable families in our city."

Eligible households must have an annual income at or below 50 percent of the median income for the area, live in one of nine specific zip codes, and have been financially impacted by COVID-19.

The ZIP codes included in the program are:

• 55403
• 55404
• 55405
• 55407
• 55411
• 55412
• 55413
• 55430
• 55454

These neighborhoods were choosen because they have the highest concentrations of poverty, officials said.

"We have come to a point in our society, that because of unchecked violent capitalism, many folks in our communities are unable to meet their basic needs, even when working fulltime (40 hours per week) jobs," said City Council Vice President Andrea Jenkins.

"The most likely impacted by these low wages to support increasingly rising costs are low wealth, women of color with children, and of that subset many are Black. Economists from around the world have long posited that Guaranteed Basic Income must become a reality to lift people out of poverty. This pilot is an opportunity to support the most vulnerable members of our society and learn what are the most effective ways to accomplish that."

Learn more about the program here.