House OK's one-time cash grants for households in Minnesota Family Investment Program

Nearly 27,000 families enrolled in the Minnesota Family Investment Program or the Diversionary Work Program could benefit from one-time cash grants up to $500 each.

HF4582, sponsored by Rep. Laurie Halverson (DFL-Eagan), would appropriate $13.85 million in federal Temporary Assistance for Needy Families funds to provide the one-time cash benefits.

The House passed the bill 73-59 Saturday. It now goes to the Senate. There is no companion.

“It is a very cost-effective way to provide economic security to some of our most vulnerable families,” Halverson said at a news conference Saturday morning. “It is vitally important that we do not allow these families to become unhoused and … further destabilized.”

Rep. Laurie Halverson

Many families on MFIP have limited access to unemployment insurance and assistance initiatives related to COVID-19, but are still in significant need, she said.

The infusion of funds could also benefit the economy as families spend that money on rent, food, and other necessities, supporters said.

The bill would also appropriate $92,000 from the General Fund to cover administrative costs, and $6,000 for IT support needed to administer the benefit, but this could also come from federal funded provided by the CARES Act, Halverson said.

House Minority Leader Kurt Daudt (R-Crown) said the COVID-19 pandemic should not be used to provide “bonuses to welfare recipients,” and that there were reasons to be concerned about the long-term strength of the TANF fund, as well as the state’s projected deficit.

“This is something the state cannot afford and these folks have not received less money,” he said.

House Majority Leader Ryan Winkler (DFL-Golden Valley) objected, saying that “economic austerity” would cause more problems long-term than up-front investments.

“These are what these dollars were designed to do,” Halverson said.