The James S. McDonnell Foundation has announced that it will fund St. Louis’ Guaranteed Basic Income program through December after it was halted this summer.
The pilot program began in December 2022 and provides 540 low-income families with monthly cash payments of $500 to help with food and other household needs. Families received their first payments in December 2023.
But after St. Louis Circuit Judge Joseph P. Whyte in July ordered payments to be paused while a lawsuit challenging the program commenced, St. Louis Mayor Tishaura Jones’ office announced last week that the program was active again thanks to a private funder. Families received $1,000 in back pay for September and October.
In June, attorneys from the Holy Joe Society filed a lawsuit on behalf of city residents Greg Tumlin and Fred Hale, claiming the program violates the Missouri Constitution and city charter. The lawsuit is ongoing, and court records show no court date scheduled.
The lawsuit and the judge’s order prevented the city from using public money for the program. It did not restrict the use of private dollars, however.
Foundation leaders said in a statement that in addition to a persistent strain on individuals and families, poverty imposes significant costs on the St. Louis economy by hindering economic development, increasing health care costs and contributing to safety concerns.
“Our focus is on ensuring that families receive the resources promised to them and that the program can continue to gather valuable data on how GBI might contribute to St. Louis’s economic growth,” said Jason Q. Purnell, president of the James S. McDonnell Foundation in the statement. “Our priorities are the well-being of these local families and the insights that could emerge to inform more inclusive growth strategies.”
Programs like GBI can improve children’s educational outcomes and their future earnings, enhance the health of both children and parents, reduce health care costs and lower crime rates, the statement said.
Karl Guenther, vice president of strategy and programs at the James S. McDonnell Foundation, said Monday the foundation has so far contributed $1 million to keep the income program running. In addition, he said other private funders are assisting the program, which is now expected to run through December.
The foundation declined to share who the other funders are.
He confirmed, however, that the McDonnell Foundation is the previously unidentified funder announced by the mayor’s office last week. The organization recently made St. Louis its focus, aiming to promote growth and prosperity in the region.
“But we are continuing to look for more funding partners, with the hope of seeing this program through its original timeline to mid-2025,” Guenther said. Foundation officials said they worked as quickly as possible with partners through the tail end of August and into September to ensure they could execute the back payments.
He said they chose to support the program because they care about the families who were promised the funds when they enrolled in it, and they’re looking forward to learning about its impact.
“We do know from similar programs in other regions that $500 a month can help a family make rent, stay in their home when they have an unexpected medical expense (and) pay off debt,” Guenther said. “It can mean the ability for someone to keep a job when a car breaks down.”
He said they hope to learn more about what this money payment means to people in the city through the program’s research and data components. Researchers at Washington University partnered with the program and have been evaluating it from the start, he said.
Previous funding for the income program included $5 million in federal COVID-19 relief money and a $1 million donation from tech entrepreneur Jack Dorsey.
Despite criticism in the lawsuit, city lawyers believe the program is constitutional since the money aims to stabilize families and benefit the local economy. Families receiving payments made less than $53,000 annually before applying.
The program is limited to St. Louis residents with children in a city public or charter school and allows them to spend the money anywhere.
