St. Paul plans to extend $500 monthly payment to low-income families

St. Paul Mayor Melvin Carter has announced plans to expand the city’s guaranteed income program, giving more than 300 families a monthly payment of $500 for the next two years.

Carter announced the program expansion at a Wednesday conference. The guaranteed income program first launched in the fall of 2020, giving 150 low-income families monthly $500 payments for 18 months.

The expanded program will give the payments to 333 families, Carter announced. The families, who must meet certain income requirements, will be randomly selected. The families also need to have a child enrolled in the CollegeBound program.

The city’s CollegeBound program has deposited $50 into a college savings account of every child born in St. Paul since 2020. In addition to the monthly payments, families selected for the guaranteed income program will receive a $1,000 deposit in their child’s account.

And through a partnership with University of Michigan and the University of Pennsylvania, another 333 families will receive the $1,000 deposit without being enrolled in the guaranteed income program, according to the Star Tribune.

The program, which still requires council approval, would mark a $5 million investment by the city.