Purpose of the Bill

The bill aims to establish a pilot program in Minnesota to provide direct financial assistance to eligible residents. The goal is to enhance economic stability, encourage workforce participation, and promote community investment by supporting recipients' basic needs.

Main Provisions

• Establishment: The commissioner of human services will create a direct cash assistance program to deliver financial support to eligible Minnesota residents.

• Eligible Grantees: Entities such as local governments, tribal governments, or nonprofit organizations with experience in community development and economic assistance are eligible to provide these grants.

• Application Requirements: Interested parties must submit applications detailing their program design, target recipients, rationale for those choices, and methods for involving community input. They must also commit to program evaluation and data collection.

• Grant Activities: Grantees will implement a program that provides at least $500 per month to eligible recipients for a minimum of 18 months. They must also gather necessary data for reporting purposes.

• Income Exclusions: The cash stipends from this program will not be counted as income or assets for the purpose of determining eligibility for various public assistance programs such as child care assistance, food support, or medical assistance.

Significant Changes

• The bill specifies stipends from the pilot program will not affect recipients' eligibility for existing assistance programs, making it easier for recipients to benefit from both the stipend and other supports.

• Eligibility for Recipients: To get the monthly payments, recipients need to demonstrate financial need and must be either receiving public benefits or have a household income at or below 300% of federal poverty guidelines. The program is open to individuals or families, with a particular emphasis on certain priority populations like the homeless or low-income individuals seeking skills or education.

• Community of Practice: A community of practice will be established to offer regular training and technical assistance to those administering the program.

• Reporting and Evaluation: Grantees must report annually on various metrics including economic, employment, health status, and educational opportunities of participants. An independent research entity will evaluate the program, and a final report on effectiveness will be presented to the legislature by January 2028.

Relevant Terms

• Direct cash assistance
• Economic stability
• Public benefits
• Federal poverty guidelines
• Community development
• Workforce participation
• Eligible grantees
• Stipends and income exclusion
• Financial opportunity community of practice