Hundreds of St. Louis families received back pay last week after a city program that provides low-income families a guaranteed basic income was restarted.
St. Louis Mayor Tishaura Jones signed the pilot program into law in December 2022, and families received their first payments in December 2023. The program provides low-income families with monthly cash payments of $500 to help cover food, utility bills and other household and family needs.
Funding came from $5 million in federal COVID-19 relief money and a $1 million donation from tech entrepreneur Jack Dorsey. The program was set to end in mid-2025.
In July, Judge Circuit Judge Joseph P. Whyte ordered that the program be suspended after a lawsuit questioned its legality. Attorneys from the Holy Joe Society had filed a lawsuit in June on behalf of residents Greg Tumlin and Fred Hale claiming the program violates the Missouri Constitution and city charter.
Conner Kerrigan, a spokesman for Jones’ office, said the city was able to resume the program last week because it found a private funder. Court records show that the lawsuit is ongoing.
“We’re not using any public dollars,” Kerrigan said Monday. “The lawsuit and the order from the judge prevented us from using public dollars for the programs. However, it did not restrict us from using private dollars.”
City lawyers have said that 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 city restricted the program to St. Louis residents with children in a city public or charter school, and the additional money can be spent anywhere.
Kerrigan said the city started looking for a private funder in July. “We’re not disclosing who the private funder is, but we’re grateful for their partnership,” Kerrigan added. “However, we are still seeking out additional partners to continue the program for the full duration.”
