Minnesota Democrats push basic income program where illegal aliens can qualify for monthly handout of $500 or more

Minnesota Democrats want to implement a freewheeling basic income program that would redistribute taxpayer money to residents identifying as needy — including illegal aliens.

House File 2666, sponsored by Democratic state Rep. Athena Hollins, cleared the House Children and Families Finance and Policy Committee on a voice vote Tuesday. Since the Democratic Party controls the office of the governor and both chambers of the legislature, the bill stands a good chance of success.

If harmonized with the state Senate's companion bill, Senate File 2559, and then implemented, $100 million would be sucked out of the General Fund in fiscal year 2025. This money would, in turn, be granted out to intermediaries. These nonprofits would be tasked doling out cash in monthly increments ranging from $350 to $1,200 to those individuals and families they deem deserving for a period of 12 to 24 months.

To qualify for this taxpayer-funded handout, prospective recipients must "be receiving public benefits or have a household income less than or equal to 300 percent of the federal poverty guidelines." Recipients also apparently don't have to prove their financial need with paperwork or proper identification.

The bill explicitly states that "grantees may set other eligibility requirements for the eligible recipients it serves under this section but must not require any other income, proof of residency or citizenship, or identifying documentation of any recipient."

Once an individual is enrolled in the program on the basis of an attestation that they qualify, they will not have to recertify. Hollins confirmed that even if a recipient gets a good job the day after qualifying, they would get to continue to draw payments.

Handouts will also not be considered as income, meaning recipients' eligibility for other welfare programs will not be affected.

Republican state Rep. Walter Hudson was critical of the proposed legislation during Tuesday's committee hearing, noting, "I think I know what this bill is trying to do, but I am confused as to the method that it is utilizing in order to do it."

"We have mechanisms within the state in order to facilitate [a universal basic income]," said Hudson. "We have our Department of Revenue. They could identify those who meet an income qualification and then provide monthly deposits through a secure cash-benefit system. Instead, what this bill does is it gets middlemen involved including nonprofits. As I see it, there are no quality controls on those nonprofits."

Hudson noted further the bill provides for no ways to "verify who's getting the money"; to ensure there won't be abuses among the intermediaries such as kickback schemes; and to regulate how intermediaries spend money on their employees.

Republican state Rep. Ben Davis indicated the bill also lacks any measure to ensure the taxpayer-funded handouts won't ultimately be blown on addicts' drug habits.

"I've worked in alcohol and drug abuse recovery programs for 12 years, and I've seen a lot of abuse with government funds being spent on peoples' addictions," said Davis. "I would highly encourage us to have something in here that says, 'Hey, you got to turn in some receipts on what you are spending this money on.' We need more accountability."

Democrats were not overly concerned about the potential for abuse. They did, however, seize upon Hudson's mention that the legislation would enable illegal aliens to draw monthly payments.

Hollins, the bill's sponsor, said in response, "I do think that it is important that we extend this — because it's a pilot program — to individuals who may not have documentation."

Hollins further suggested that it was prudent to include illegal aliens in the program in the interest of collecting more data to know how "to best implement something like this in the future if we wanted to do something at the statewide level that identifies all the people."

Democratic state Rep. Liz Lee argued that illegal aliens should be eligible because they allegedly pay taxes to the state.

"The Minnesota tax base is funded by undocumented and noncitizens," said Lee.

State Rep. Carlie Kotyza-Witthuhn echoed Lee, claiming, "We earn $5.8 billion dollars off the backs of undocumented immigrants in the state of Minnesota. ... They are paying taxes, and we should be supporting them."

The rollout of universal basic income without a requirement that recipients provide legal documentation would be a bonus for those illegal aliens already drawing heavily on federal welfare benefits.

Citing data from the 2022 Survey of Income and Program Participation, the Center for Immigration Studies concluded in a December report that an estimated 59.4% of households headed by illegal aliens drew on at least one major taxpayer-funded welfare support.

As a cohort, illegal aliens reportedly use every welfare program at "statistically significant higher rates than the U.S.-born, except for [Supplemental Security Income], [Temporary Assistance for Needy Families], and housing."

The House Committee on Homeland Security indicated in a November 2023 report that "for every one million parolees released into the United States on [Department of Homeland Security Alejandro] Mayorkas' watch, the cost in federal welfare benefits that will be incurred could total $3 billion annually, with those costs starting to kick in January 2026."

Blaze News previously reported that the estimated annual cost to house known gotaways and illegal aliens released into the country under Biden's watch is $451 billion.

Alpha News reported that HF2666 will next be taken up by the state House Human Services Finance Committee.

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