Purpose of the Bill

• The purpose of the bill is to establish a Minnesota financial opportunity grant pilot program. This program aims to provide direct cash assistance to eligible Minnesota residents to promote economic stability and workforce participation, and to support their basic needs.

Main Provisions

• Establishment: The program will provide monthly financial support to eligible recipients to help meet their basic needs and encourage economic and community development.
• Eligibility: Eligible grantees can be local government entities, Tribal governments, or nonprofit organizations with experience in community development. To qualify for payments, recipients must either be on public benefits or have a household income at or below 300% of the federal poverty guidelines.
• Stipend Details: Recipients will receive a minimum of $500 per month for at least 18 months. These payments will not be considered as income or assets when determining eligibility for various assistance programs, including food support, childcare assistance, and medical assistance.
• Application Requirements: Grant applicants must propose an initial program design, justify eligible recipients, and involve community members in the program's design.
• Community Practice and Evaluation: A financial opportunity community of practice will provide training and technical assistance to grantees. An independent entity will evaluate the program to assess its effectiveness and efficiency.

Significant Changes to Existing Law

• The bill specifically exempts cash stipends provided through this pilot program from being considered as income or assets for eligibility determination under certain Minnesota social support programs.

Reporting and Evaluation

• Grantees must collect and report data on participants' economic status, employment, health, food and housing security, and educational enrollment. A final report on the program's efficacy will be submitted to legislative committees by January 2028, ensuring participant anonymity.

Funding

• The bill includes a one-time appropriation from the general fund for fiscal year 2026 to support the pilot program, with funds available until June 30, 2028. Some of the funds may be used for outreach, technical assistance, training, and evaluation.

Relevant Terms

• Financial opportunity grant
• Cash assistance
• Economic stability
• Community development
• Public benefits
• Federal poverty guidelines
• Nonprofit organization
• Economic assistance programs