The program, which began in June 2022, will continue to pay 200 households a monthly cash payment of $500 through June 2024.
Direct payment recipients of the Minneapolis Guaranteed Basic Income Pilot can expect their next payment in just nine days
The payments can be spent in any way the recipient chooses. The program aims to help those affected by the COVID-19 pandemic, including those who lost their job, have higher health expenses, or lost access to child care.
To be eligible for the program, applicants had to be 18 years old by Jan. 1, 2022, have an annual income at or below 50% of the area median income for Minneapolis, and live in one of several specified zip codes. The Minneapolis Federal Reserve is evaluating the program, and demographics show that 80.5% of recipients are black, indigenous, or people of color, while the remaining 19.5% are white or non-Hispanic.
Additionally, 69% of recipients are women, and 42.5% of all recipients are between the ages of 30 and 39. About a third of households receiving money from this program have only one person.
The project manager for the program explained that payments are processed on the 20th of each month and that all participants receive $500 every month
Recipients have the freedom to use the payments as they see fit. The program is seen as a test case for universal basic income in the United States, with some hoping it will lead to the adoption of such policies in other cities and states. The Minneapolis Guaranteed Basic Income Pilot is aimed at addressing financial insecurity and reducing poverty in the city.
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