The Minnesota Family Investment Program "Family Cap" Rule
In 2003, as a response to Minnesota’s budget problems, the state introduced new rules that froze the public assistance grants for families on the Minnesota Family Investment Program (MFIP) who give birth to another baby. This policy is called the “Family Cap.” Essentially, a mother on public assistance will not receive additional resources from the state if her family grows with the birth of a new child.
The rationale for this policy was that parents on the welfare-to-work programs would not have another child if they knew their cash grant would remain stagnant. Data from the Minnesota Department of Human Services shows, however, that infants still make up 17-18% of the children on the welfare-to-work program – just as they did in the years before the policy changed.
This puts infants at high risk: MFIP cash grants in Minnesota have not been increased since 1986. Consequently, families who receive this assistance are already living in deep poverty – at one-half of the poverty level or less ($10,325 for a family of four).