St. Louis launches program to pay $500 a month to lower-income residents

St. Louis is launching a program that seeks to help low-income families by providing them with $500 monthly payments for a year and a half

Payments to the Needy-St. Louis

St. Louis is launching a program that seeks to help low-income families by providing them with $500 monthly payments for 18 months.

The program is a signature priority for Mayor Tishaura Jones, who said Tuesday that the money will go to hundreds of city households, the St. Louis Post-Dispatch reported. She believes it will help rebuild neighborhoods and prevent the root causes of crime.

“St. Louis’ guaranteed basic income will give hundreds of St. Louis families the resources they need to lift themselves out of poverty, giving them a strong foundation to grow and to thrive,” Jones said at a news conference.

The Board of Aldermen approved the program last year. The city will use $5 million in federal pandemic aid. Meanwhile, St. Louis native Jack Dorsey, who co-founded Twitter and Square, is contributing $1 million.

Jones announced a website for those interested. Applications will be open between Oct. 23 and Nov. 1, and the city will start sending the money, on debit cards, in December.

The concept isn't new. During the pandemic, the federal government temporarily expanded the child tax credit to send families up to $300 per month for each child. Researchers said it cut child poverty in half. Other cities already experimenting with guaranteed basic income include Baltimore; Chicago; Denver; Birmingham, Alabama; and Columbia, South Carolina.

In 2021 and 2022, a round of one-time $500 checks went to more than 9,000 St. Louis households, aimed at helping to help pay for groceries, utilities and other essentials.

The new effort is expected to send money to roughly 540 St. Louis households with parents or guardians of children attending city public schools, including charter schools. Eligibility is limited to those making 170% of the federal poverty line or less — about $42,000 for a family of three.