Gov. Walz Proposes Cash Payments, Tax Cuts For Some MN Families

TWIN CITIES, MN — Gov. Tim Walz is proposing a number of measures aimed at helping middle and lower-income families in Minnesota, including cash payments and tax cuts. The proposals are a part of his proposed "COVID-19 recovery budget," which he unveiled Tuesday.

"Not every Minnesotan was hit by the COVID-19 pandemic equally. Many working families, who couldn’t login from home, lost everything," the governor's office said in a statement.

"Minnesotans know that we all do better when we all do better — and a lot of our neighbors need help."

The proposals:

One-time payment of up to $750

This proposal would apply to families in poverty, with about 32,400 Minnesota families — including 64,000 children — benefiting. The money would come through Minnesota's Family Investment Program.

A household of four making less than $26,500 is considered below the federal poverty line.

Expand first-tier income tax bracket

This proposal would expand the first-tier individual income tax bracket by increasing the income threshold, which would cut taxes for more than 1 million households, according to the governor's office.

Expand working family tax credit

The governor also proposes expanding the working family credit, which would benefit 300,000 Minnesota households. Eligible households would see an average increase in their tax credit of about $160.

Other proposals aimed at helping Minnesota workers include the following:

• Provide COVID-19 emergency paid leave.
• Establish a paid family and medical leave insurance benefit.
• Provide reliable access to public transportation.

Read more about the governor's budget proposal here.