Does extra pay help poor families? Local programs have shown promise, but a new study casts doubt

St. Paul concluded its guaranteed-income program this month, which distributed $500 monthly payments to low-income families. Participants reported reduced stress and improved financial stability, with employment rates rising from 49% to 63% post-program. However, the national Baby’s First Years study found no notable improvements in children's development for families receiving cash payments. Jennifer Lor, a spokesperson for Mayor Melvin Carter, stated that the goal is to disrupt cycles of generational poverty.

Minneapolis is running a similar pilot program, with results to be analyzed by the Federal Reserve Bank of Minneapolis. Local officials expect these payments to provide families with a foundation to access additional city resources. While the immediate effects are mixed, they hope the long-term impact on stability and well-being will be more evident over time. The conversation around the effectiveness of cash assistance continues amid varying results from local and national studies.