Minneapolis giving 200 families $500 per month as part of guaranteed basic income pilot program

Two hundred Minneapolis families will receive $500 per month for the next 24 months, as part of a guaranteed basic income pilot program by the city.

The new initiative announced Wednesday by Mayor Jacob Frey and Minneapolis City Council Vice President Andrea Jenkins will be funded by the federal American Rescue Plan Act. The city plans to post applications for the pilot program on its site before the end of the year. The city would also plan to start payments in 2022.

Leaders say they will work with the Federal Reserve of Minneapolis to give a "rigorous evaluation of the program" that will help shape potential future policy locally and nationally.

Wednesday's announcement comes on the heels of Los Angeles announcing a similar program paying 3,200 families $1,000 for 12 months.