Today, the Minneapolis City Council voted to approve the first round of American Rescue Plan funding for the City of Minneapolis, affirming Mayor Jacob Frey’s initial proposal announced last month. The nearly $102 million approved today is the first of two rounds of the $271 million in federal funding awarded to the City of Minneapolis through the passage of the American Rescue Plan.
The approved $102 million in funding features a strong emphasis on economic recovery, affordable housing, and community safety measures while piloting new programming like a Guaranteed Basic Income (GBI) Pilot. Key priority areas include affordable housing ($28 million), economic recovery ($37 million), public safety ($13.7 million), and a new Minneapolis GBI program ($3 million). Approximately $12.7 million is budgeted for enterprise investments such as furlough relief and other staff needs.
“This funding will support important work to reignite our city,” Frey said. “We’re moving forward with purpose and urgency to support small and BIPOC-owned businesses and workers, expand our affordable housing work, and invest in a both-and approach to community safety. As one of the first major cities to finalize a plan for deploying these crucial federal funds, Minneapolis is well-positioned to accelerate our inclusive recovery work and support our residents who have been most impacted.”
The majority of the $102 million approved today will be distributed beginning in August 2021. Frey will put forward his proposal for allocating the remaining approximately $169 million later this year.