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St. Louis Guaranteed Basic Income Program Faces Lawsuit Over $4 Million Fund Distribution

(photo: The Business Journals)

A lawsuit against St. Louis challenges its Guaranteed Basic Income program.

St. Louis Guaranteed Basic Income Program Faces Lawsuit Over Fund Distribution

A lawsuit has been filed against the City of St. Louis over its Guaranteed Basic Income program. Taxpayers Greg Tumlin and Fred Hale are challenging Mayor Tishaura Jones, Comptroller Darlene Green, and Treasurer Adam Layne in court. They claim the program distributing public funds directly to individuals, violates the Missouri Constitution and City Charter. Attorney Kimberly Mathis supported by the nonprofit Holy Joe Society represents them.

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(photo: KSDK)

St. Louis Lawsuit Seeks Immediate Halt to Guaranteed Basic Income Payments Amidst Debate on Government Fund Usage

The program, authorized by Board Bill 116 in 2022, allocates $4 million from federal American Rescue Plan Act funds. It provides $500 monthly for 18 months to about 440 eligible households. These households must meet income criteria and have children enrolled in St. Louis Public Schools. Critics argue the payments breach laws governing public fund distribution, according to the report of Just The News.

The lawsuit demands an immediate halt to all payments under the Guaranteed Basic Income program. The court has set a response deadline of June 28 for the city and officials. This legal challenge raises questions about government funding use and local authority in social welfare policy implementation.

Separately, Mayor Jones’ administration launched a $315,479 revolving loan fund to aid low-income St. Louis residents. It assists with property taxes, vehicle license fees, and insurance premiums. The initiative aims to ease financial burdens but faces scrutiny over compliance with public fund usage laws. The lawsuit’s outcome could impact social assistance policies in St. Louis and beyond.

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