The State of ALICE in Minnesota reveals that traditional measures of poverty have severely undercounted the number of households statewide living in financial hardship. While 9% of all households in the state earned at or below the Federal Poverty Level in 2023, the new research shows that 25% of households – nearly three times as many – were ALICE^® (Asset Limited, Income Constrained, Employed, and above the Federal Poverty Level). Combined, 34% of Minnesota’s households fell below the ALICE Threshold of Financial Survival in 2023.

ALICE households bring in less than the basic costs of housing, child care, food, transportation, health care and technology, plus taxes. Yet because their income is above the Federal Poverty Level, they often don’t qualify for assistance.

“When we underestimate how many households are struggling, we underestimate what it truly takes to build thriving communities,” said United Ways of Minnesota Executive Director Doris Pagelkopf. “This means entire families and essential workers may be overlooked for support, left without the resources they need to stay healthy, achieve financial stability and reach their fullest potential. That’s a loss not just for ALICE, but for all of us.”

The crux of the struggle for ALICE families is the gap between wages and expenses. In 2023, a family of four in Minnesota needed $81,216 just to cover the essentials – nearly three times the Federal Poverty Level of $30,000. Yet even with both parents working full time in two of the state’s most common jobs – a personal care aide and a stock worker/order filler – this family’s combined income of $71,790 still fell short of the cost of basics by $9,426.

“The findings from this latest report are clear: Despite our state’s continuing prosperity, more than a third of Minnesotans are being left behind economically,” said Shannon Smith Jones, senior vice president of community impact at Greater Twin Cities United Way. “At every level of government and policymaking, it is critical that our leaders understand how widespread ALICE is in our state, so that our public systems can step up to create new opportunities for families to thrive.”

The State of ALICE in Minnesota also reveals that in 2023:

• Some groups face financial hardship at disproportionate rates, with 60% of the youngest and 49% of the oldest households in Minnesota falling below the ALICE Threshold, compared with 27% of households headed by someone age 25-44.
• Housing continues to be an obstacle for struggling families. Among households below the ALICE Threshold in Minnesota, 71% of households that rented and 56% of those that owned were rent and housing burdened – meaning they paid 30% or more of their income on rent and housing costs.

For many ALICE households, that baseline level of economic hardship leaves families with a thin margin to navigate life’s challenges, yet they are often overlooked because they earn more than the Federal Poverty Level. “ALICE families are especially vulnerable during natural disasters and times of economic uncertainty and yet often feel unseen or left behind,” said Stephanie Hoopes, Ph.D., National Director at United For ALICE. “By providing a name and a way to quantify these households, we’re equipping communities with the data to build solutions that offer better choices and real pathways to stability.”

More state and local data is available through the interactive dashboards on UnitedForALICE.org/Minnesota.

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About Greater Twin Cities United Way: Greater Twin Cities United Way unites changemakers, advocates for social good and develops solutions to address the challenges no one can solve alone to create a community where all people thrive, regardless of income, race or place. For more information, visit gtcuw.org and follow us on Facebook, X (Twitter), Instagram and LinkedIn.

About United Ways of Minnesota: United Ways of Minnesota was created to maximize the benefit of a statewide organization for local United Ways. Our priorities include sharing and exchanging best practices, successes, resources and management. Our Statewide Association Board of Directors comprised of one executive director and board members from the local member United Ways. Our board of directors meets six times per year and maintains a committee structure that addresses executive and legislative affairs, training, planning and communications. 

About United For ALICE: United For ALICE is a U.S. research organization driving innovation, research and action to improve life across the country for ALICE^® (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 35 states and the District of Columbia and includes United Ways, corporations, nonprofits and foundations in Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.

The post Working – and Still Falling Short: 1 in 4 Workers in Minnesota’s Most Common Jobs Struggle to Get By appeared first on Greater Twin Cities United Way.

One key resource that makes this possible is our state’s Early Learning Scholarship (ELS) program, overseen by the Minnesota Department of Children, Youth & Families (DCYF). These scholarships are designed for children and families who wouldn’t otherwise be able to access quality early learning and child care – supporting families who are low-income or who experience foster care, and prioritizing those impacted by circumstances like substance use, incarceration or domestic violence.

I’m excited to share that in 2024, Greater Twin Cities United Way entered into a new partnership with the Department of Children, Youth & Families to help make important improvements to the Early Learning Scholarship program model – one which builds on our deep engagement with the early childhood sector and our unique administrative capabilities. Keep reading to learn more.

Streamlining Early Learning Scholarship Administration

Last year, over 16,000 children across the state received Early Learning Scholarships to access high quality child care and early education – a 31 percent increase over the previous year. To access scholarship funding, child care providers complete an invoicing process to receive direct payments from DCYF for child care services provided to families who have been awarded Early Learning Scholarships.

Many providers struggled with this invoice and billing process. Until 2024, these functions were divided among multiple organizations representing different regions of the state. Programs and providers often had to send invoices to multiple area administrators for payments, and area administrators differed in their processes and procedures, which created additional complications for providers.

Based on recommendations from the Great Start for All Minnesota Children Task Force and following engagement with administrators and providers, DCYF opted to centralize this invoice and billing administrative function under one roof. Beginning with the state’s 2025 fiscal year (effective July 1, 2024), Greater Twin Cities United Way entered a new role as the state’s Central Payment Administrator – providing a single, unified payment processing experience for all child care providers statewide.

“We strive for continuous improvement in the early learning scholarship program, and feedback from early care and education programs and providers showed the need for a central payment administrator,” said DCYF Commissioner Tikki Brown. “This centralized approach will increase efficiencies and reduce administrative burden for the program, which means providers spend more time with children and less time on paperwork.”

This partnership draws on many of our existing strengths as an organization. Among organizations working in early childhood education in our state, Greater Twin Cities United Way has a uniquely deep body of experience in managing the kinds of payment processing and financial tracking systems required for this role.

This, plus our record of success managing high-volume services like the 211 resource helpline and the 988 Suicide & Crisis Lifeline, made Greater Twin Cities United Way a natural partner to ensure efficient and effective payment processing for Minnesota’s child care providers.

Supporting Child Care Providers Statewide

This new role has represented a significant investment for Greater Twin Cities United Way – one that is already making a positive impact for providers and families in our state.

Since last year, we’ve hired a new team of 15 staff entirely dedicated to processing Early Learning Scholarship invoices. Each provider and program now has a dedicated billing specialist, providing more personalized guidance and offering a straightforward point-of-contact when any questions arise.

Between July 1, 2024, and March 31, 2025, we have successfully:

• Processed 16,489 invoices for payment.
• Paid out $64,952,282.39 in scholarship funds.
• Served 10,667 children.
• Supported 1,385 child care providers and programs.
• Processed an average of $1.7M in scholarship payments each week.

These efforts are translating to a streamlined experience for child care providers. As one provider told us in a recent partner survey, “[Our organization] used to bill to three entities. Sometimes a child would live in one county but attend a center in another; what that meant for us is that one classroom could have multiple different payment administrators. One billing entity is a BLESSING.”

We’re also excited to launch a new invoicing portal this spring, which will further streamline and simplify the process for our providers to submit and track invoices.

Beyond the immediate benefits to child care providers and families, this centralized approach also allows for more effective tracking and monitoring.

All of this work helps child care organizations more easily get resources to serve families and frees them up to spend more time with children rather than with administrative tasks.

How You Can Help

Although our new Early Learning Scholarship partnership is fully funded by the state of Minnesota, we couldn’t have entered into this relationship without the support of Greater Twin Cities United Way donors. A gift to our Annual Fund helps ensure that we can continue to cultivate new and innovative partnerships to support families across our state.

With your help, we can continue to deepen our commitment to quality early childhood education. Join us, and help us ensure that all kids in our state have the great start they deserve.

• Join our Advocacy Network for the latest action alerts and updates on bills we’re supporting.
• Follow us on LinkedIn, TikTok, Instagram and Facebook.
• Donate to our Annual Fund, supporting all our efforts to create lasting change.

The post A Great Start for All: United Way’s Role in Early Learning Scholarships appeared first on Greater Twin Cities United Way.

Greater Twin Cities United Way – and our many community partners – play an important role in this process. Through direct services like our 211 resource helpline, as well as our deep relationships within the nonprofit and government sectors, we offer a unique perspective on how our state government can better support all Minnesotans. The growing number of Minnesotans without access to stable housing, affordable childcare, food, and resources demands every lawmaker coming to the table to develop sustainable solutions.

This effort is deeply personal for me. Growing up, I witnessed firsthand how our public systems can let people down in their moment of need. But from this experience, I also know that the right support can help people grow and thrive – and that the decisions we make can shape lives and strengthen communities. I am here today because I know that our systems and lawmakers can do better.

Our priority issues for 2025

All of our policy priorities for this session are informed by areas where United Way has already committed time and dollars to make an impact in community. Here are some of the key priorities we will be working to push forward.

211: In 2024, Greater Twin Cities United Way’s 211 resource helpline fielded more than 240,000 requests for help from individuals and families looking for housing, food, education and other local resources. With demand for these services continuing to rise year-over-year, one of our top priorities this year will be securing permanent state support to ensure consistent and reliable 211 service for all Minnesotans.

Stable Housing: Through our Pathways Home initiative, we’ve identified specific systemic gaps that make it more challenging for individuals – and especially young people – to secure stable housing. Our efforts at the Capitol this year will seek to increase access to stable, affordable housing for families and for young people who are exiting foster care.

Early Child Education: Similarly, our 80×3: Resilient from the Start initiative has given us unprecedented insight into the transformative potential of early childhood education. We will be advocating for policies that increase families’ access to affordable, trauma-sensitive, culturally responsive early child care – while also advancing new policies and investments that ensure the sustainability of a career in child care.

Food Security: And through our Full Lives initiative, we have seen the potential impact of a regional, system-wide approach to food security. This year, we’ll be working with lawmakers to support the growth of an equitable food system, transforming how food in our state is produced, distributed, and consumed. This approach creates jobs, fosters entrepreneurship and ultimately promotes thriving, healthy communities.

In these areas and more, we look forward to working with lawmakers to build on the data we’ve gathered and the lessons we’ve learned.

Read more about our policy priorities in our 2025 advocacy agenda.

In addition to the policy goals that we’ll be promoting directly, our team is also providing financial support for 16 community organizations whose advocacy work aligns with one or more of our priority issues. See below for a full list of funded advocacy partners.

What’s ahead this session

As those who follow state politics are likely aware, this session will bring a new dynamic to the Capitol in 2025. A special election on January 28 will determine the seat in Senate District 60 – and a House race in District 40B (expected for March) will determine the balance of power in that chamber.

Despite the uncertainty and potential challenges surrounding divided government this session, I have reason for optimism. After a divisive election season, our lawmakers will need to find new areas of consensus and common ground. Essential needs like affordable housing and quality child care aren’t partisan goals – they’re the bare minimum of what we should expect from lawmakers in both parties.

United Way plays an important role in bridging the partisan divide. We hope to see this translate into meaningful progress for families in our state – and we hope that voters pay attention to see which lawmakers step up to this historic challenge.

How you can get involved

Even with all of the efforts of my team and our partners, we can’t do this work alone. As a supporter of Greater Twin Cities United Way, you can help build momentum for lasting change in this year’s legislative session.

You can support our advocacy at the Capitol by:

• Joining our relaunched Advocacy Network for the latest action alerts and updates on bills we’re supporting.
• Joining us at Advocacy for Children Day on February 20 at the Capitol – registration is now open.
• Accessing our advocacy toolkit, full of useful resources to help you find and connect with your legislators this session.
• Donating to our Annual Fund, supporting all of our efforts to create lasting change.

Our funded advocacy partners in 2025:

1. CAPI
2. Ed Allies
3. Foster Advocates
4. The Good Acre
5. Hearth Connection
6. Ignite
7. Institute for Agriculture and Trade Policy
8. Keeping Families Connected – Minnesota
9. Legal Rights Center
10. Mental Health Legislative Network
11. Minnesota Association of Community Mental Health Programs (MACMHP)
12. Minnesota Coalition for Family Home Visiting
13. Minnesota Coalition for the Homeless
14. MNEEP
15. St. Paul Promise Neighborhood
16. Youth Services Network

The post 2025 at the Capitol: Our Policy Priorities appeared first on Greater Twin Cities United Way.

To advance economic opportunity, we invest in meeting urgent needs and creating lasting change. Our partners work across the spectrum of economic impact — from support for individuals and families overcoming short-term financial hardship to long-term community development strategies focused on growing generational wealth and overcoming systemic racial inequity. 

Meeting urgent needs through 211 and nonprofit partnership 

Our nonprofit partnerships are deeply rooted in communities across the nine-county metro and provide access to job training, entrepreneurship and wealth-building support, and access to safe financial products. Our 211 resource helpline connects jobseekers with educational and job-training resources, many of which are provided by our nonprofit partners.  

Entrepreneurial support: Partnership in Property Commercial Land Trust 

Because business ownership is one important pathway to wealth, we partner with nonprofits supporting entrepreneurs with a focus on adults earning low incomes and those in Black, Indigenous, Asian and Pacific Islander communities and Communities of Color. 

Partnership in Property Commercial Land Trust (PIPCLT), our partner since 2022, ensures Entrepreneurs of Color and with limited revenue have access to real estate. CEO, founder and executive director Domonique Jones says, “We are also community stewards. We want to make sure that BIPOC businesses are anchored in communities that will thrive by them being there.”  

PIPCLT has drawn on United Way’s support to grow its staff, including an operations manager to help navigate the complexities of commercial real estate development. In partnership, we’ve helped connect local entrepreneurs with opportunities for affordable property ownership and cultivated new networks of business owners and lenders.  

Hear more about our partnership from Jones below: 

Creating lasting change through intentional ongoing collaboration 

Our innovation initiatives invest deeply to overcome the most persistent barriers in our workforce systems. We seek to remove systemic barriers that keep families and individuals from achieving economic independence, so that all adults will have the opportunity to participate in the workforce and advance toward family-sustaining wages. 

Innovation initiative: Career Academies and Purpose Driven Paychecks 

Since 2015, our Career Academies innovation initiative has partnered with school districts, employers, higher education institutions and youth organizations to establish new career pathways programs for young people. This work is helping connect young people to high-wage, in-demand career opportunities, while simultaneously closing local employment gaps and promoting greater diversity in the workforce. 

In 2022, we built on our Career Academies initiative with our Purpose Driven Paychecks program. Purpose Driven Paychecks supports educators and youth-serving nonprofits to establish relationships with employers that provide work experiences for students 14-22 in high-demand, high-wage careers. Additionally, Greater Twin Cities United Way prioritizes funding partners that bring a deep focus on Students of Color, Indigenous students, students with a disability, and students from low-income households. Partnerships offer industry-aligned certifications that all track to high-wage, high-demand careers projected to grow in the partner’s local area. One partner said: “If we want to meaningfully challenge the persistent economic disparities that confront communities across Minnesota, it is crucial to build pipelines to economic success that disrupt the status quo.”  

Addressing the benefits cliff through advocacy 

One of our major priorities at the Capitol is ensuring that state programs and resources are setting individuals and families on the path to success. When eligibility requirements or benefit cutoffs are too stringent, they can pose additional barriers for those seeking assistance – a circumstance commonly known as the “benefits cliff.” Our advocacy agenda addresses the benefits cliff along with several other policy issues to create a future where all adults participate in the workforce in a way that generates increased and sustainable wages.  

In 2023, we made significant progress toward mitigating the benefits cliff. Through policy shifts to the Minnesota Family Investment Program to reduce applications from monthly to twice annually (reducing paperwork and helping families with variable income stabilize), Medical Assistance (to ensure consistent coverage for minors) and Housing Supports programs (to ease income restrictions), we were able to ensure that our public resources continue to serve those to whom they matter most. 

In 2024, Greater Twin Cities United Way and United Ways of Minnesota gathered at the State Capitol to launch United for ALICE (Asset Limited, Income Constrained, Employed), with the release of our report, “ALICE in Minnesota: A Study of Financial Hardship.” The report provides insights to understand families, neighbors, and colleagues who work hard, earn above the Federal Poverty Level, but don’t make enough to afford a basic household survival budget.  

Further, our advocacy agenda address the following issues to promote greater economic opportunity throughout the state of Minnesota: 

• Provide young people the tools to graduate high school in a position to enter high-wage, high-demand careers through career pathways programs and high-quality out-of-school programs 

• Remove governmental barriers to wealth-building opportunities for families and individuals to achieve economic stability 

• Stabilize and encourage a robust and diverse workforce through recruitment, retention, livable wages and mental health support, specifically in early-childhood care and education 

Exploring economic opportunity further 

Greater Twin Cities United Way advances economic opportunity in our region by meeting urgent needs — and by creating lasting change through innovation initiatives and advocacy. We’re supporting our neighbors to ensure they have the skills they need to find and maintain living-wage jobs. We exist to fuel lasting change that will help us achieve our vision of a community where all people thrive regardless of income, race, or place.  

• Learn more about ALICE and explore the data behind creating communities where people thrive economically.  

• Hear Greater Twin Cities United Way’s associate vice president of Community Impact, Stephannie L. Lewis, in conversation with board chair Al McFarlane about how the ALICE data is driving insight.  

• See Career Academies in action and learn more about the impact of our youth-focused initiative.  

• Explore our advocacy work to understand more about how we are promoting economic opportunity in our region.  

• Celebrate our advocacy efforts at the Capitol addressing the benefits cliff.  

The post Economic Opportunity: Building Pathways to Prosperity and Belonging appeared first on Greater Twin Cities United Way.

That’s why Greater Twin Cities United Way works with community partners across the metro to advance educational success in our region by meeting families’ most urgent needs and creating lasting change that will follow our youngest community members into adulthood.  

Meeting urgent needs 

To ensure all children and their families have what they need to thrive, we connect parents and educators via 211 to resources that help families access housing, put food on the table and meet other basic needs. Additionally, 211 connects youth and families to learning opportunities and responds to mental health crises and ongoing needs through 988 and 211. One in 10 callers to 988 is a child younger than 15. 

Generous volunteers help provide backpacks full of school supplies for 45,000 local students through our Action Day volunteer initiative. Action Day helps make education accessible, affordable and inclusive to all students so they can thrive in the classroom and beyond. 

To further support families and our youngest learners, Greater Twin Cities United Way partners with and funds early-childhood care and education partners committed to children’s development and parent’s success. Early-childhood success provides the foundation from which individuals and their families achieve greater life outcomes in community, academics, health and the workforce. 

We support the development of our region’s youth by funds youth-serving organizations aligned with young people’s developmental and cultural strengths and we create opportunities for young people to use their voices and lead. 

Creating lasting change for Minnesota youth 

Our innovation initiatives invest deeply to overcome the most persistent barriers in our education system. We work to protect, advance and expand early childhood, after school, and career pathway programs so that all children will be prepared to thrive academically, personally and socially. 

Innovation initiative: 80×3 

80×3, an early childhood education and care initiative launched by Greater Twin Cities United Way in 2022, is on a mission to address and minimize the impacts of childhood trauma and expand our region’s capacity to deliver trauma-sensitive care. 

Research shows trauma-sensitive caregiving can help children grow their resiliency, and a wide body of evidence demonstrates long-lasting benefits of early intervention that follow children into adulthood resulting in higher educational attainment and higher wages. By collaborating with nonprofits and the public agencies that guide and train providers, 80×3 supports local early childhood education and care programs to effectively integrate trauma-sensitive care.  

Four Directions Center: Meeting Urgent Needs and Creating Lasting Change 

Four Directions Center is a therapeutic preschool in South Minneapolis that partners with Greater Twin Cities United Way to meet urgent needs and create lasting change as an 80×3 partner. The center provides culturally responsive early-childhood education to prepare children ages six weeks to 12 years for success through full-day, year-round education and care, including access to Ojibwe and Dakota language immersion classrooms. 

“Partnering with the United Way has helped us tremendously with the families in the community we work with,” said Kelly Suzick, assistant director at Four Directions Center. “We build on each other with the families and the kids we work with every day.” 

Innovation initiative: Career Academies 

Since 2015, our Career Academies innovation initiative has partnered with school districts, employers, higher education institutions and youth organizations to establish new career pathways programs for young people. This work is helping connect young people to high-wage, in-demand career opportunities, while simultaneously closing local employment gaps and promoting greater diversity in the workforce. 

Career Academies open doors to diverse industries, engaging students in progressively deeper engagements with in-demand careers. Working together with Minnesota employers, Career Academies builds tailored programs that directly address the specific needs and job opportunities within each local community.  expanding statewide, this Greater Twin Cities United Way innovation initiative advances equity by opening pathways for young people in households earning low incomes and in Black, Indigenous, Latine, Asian and Pacific Islander communities and Communities of Color to access wealth-building careers.  

Driving systemic change for young people in Minnesota 

Our bipartisan advocacy work at the local, state and national level is an important part of how we partner with community organizations and policy makers to create transformative, lasting change. We advocate for policy shifts and work in coalitions to widen our collective impact – accomplishing change far beyond what any organization can do alone. Our advocacy team works to build lawmakers’ support for policy shifts and new investments. 

Our 2024 policy and advocacy agenda centers families, young people, and children prenatal to age five in a variety of ways. Greater Twin Cities United Way is focused on the following issues:  

• Provide young people the tools to graduate high school in a position to enter high-wage, high-demand careers through career pathways programs and high-quality out-of-school programs 

• Remove governmental barriers to wealth-building opportunities for families and individuals to achieve economic stability 

• Stabilize and encourage a robust and diverse workforce through recruitment, retention, livable wages, and mental health support, specifically in Early Childcare and Education 

• Increase access to affordable, trauma-sensitive, culturally responsive childcare and early childhood education 

Learn more about our impact at the legislature in 2024.  

A further look into educational success  

Greater Twin Cities United Way advances success in education by meeting youth and families’ urgent needs and by creating lasting change through innovation initiatives and advocacy. We exist to fuel lasting change that will help us achieve our vision of a community where all people thrive, including our youngest community members and the people that support them, regardless of income, race, or place.  

1. See 80×3 in action and learn more about the impact of our initiative focused on early childhood.  

2. Hear from subject and program experts on 80×3’s focus on equity.  

3. See Career Academies in action and learn more about the impact of our youth-focused initiative.  

4. Learn more about how our 80×3 and Career Academies initiatives are building movements for change.  

5. Explore our advocacy work to understand more about how we are advancing educational success in our region.  

6. Celebrate the advocacy work we’ve accomplished in the past, setting the stage for further policy implementation in our current and future advocacy efforts.  

The post Educational Success: Supporting Communities Where Children and Families Belong appeared first on Greater Twin Cities United Way.

Those who earn less than the Federal Poverty Level are eligible for public assistance, but without updated guidelines or increased incomes, more and more Minnesotans are struggling to make ends meet. This has become an increasingly-noted experience of the growing middle class – many hardworking Minnesotans are living paycheck to paycheck, forced to make impossible decisions each month between paying rent or buying food, receiving medical care or paying for child care. Enter ALICE.

ALICE® stands for Asset Limited, Income Constrained, Employed, and it is a way of describing households that earn above the Federal Poverty Level but not enough to afford household basics in the communities where they live. We all know ALICE workers and rely on them every day: They are our neighbors, family and friends, our health care and child care providers, teachers, long-term care professionals, retail workers, cashiers, and many others.

In 2009, United Way of Northern New Jersey started United for ALICE as a way to measure financial hardship in families who struggle to afford basic needs but are often missing from traditional data demonstrating poverty and need. ALICE data is now available in 28 states, where partners convene, advocate, and innovate for ALICE in their communities. At the urging and support of United Ways across our state, Greater Twin Cities United Way and United Ways of Minnesota launched ALICE on September 10, 2024 with the release of our report, “ALICE in Minnesota: A Study of Financial Hardship.”

Shining a Light on ALICE

United for ALICE researchers worked with a Minnesota research advisory committee composed of experts from across the state to create the report. The inaugural Minnesota ALICE data highlights the Minnesota households that work hard but face real hurdles in being able to get ahead. According to the Federal Poverty Level, 10 percent of households in Minnesota were in poverty in 2022 – yet ALICE data shows that another 26 percent, more than twice as many, were ALICE, earning above the Federal Poverty Level but not enough to afford the basics. This means 36 percent of Minnesota households were unable to meet their basic needs.

In 2022, the cost of household basics (housing, child care, food, transportation, health care, and technology) plus taxes was $26,712 for a single adult and $77,304 for a family of four with two adults, an infant, and a preschooler — much higher than the Federal Poverty Level of $13,590 for an individual and $27,750 for a family of four. This means for those who earn more than the Federal Poverty Level yet less than the cost of living, they do not have enough income to cover their basic needs. Costs of living also varied widely by county in Minnesota: The survival budget for a family of four was lowest at $69,636 per year in Wilkin County and highest at $103,152 per year in Washington County.

Households below the ALICE threshold exist across all demographic groups in Minnesota. However, systemic racism, ageism, gender discrimination, and geographic barriers disproportionately affect certain groups, limiting their access to resources and opportunities for financial stability. In 2022, 60 percent of Black and 45 percent of Hispanic households in Minnesota were ALICE, compared to 34 percent of white households. Additionally, from 2010 to 2022, people age 65 and older represented the fastest-growing demographic in Minnesota, experiencing a 44 percent increase in the number of households facing financial difficulties.

What’s Next for ALICE?

This snapshot of Minnesota ALICE households in 2022 provides Greater Twin Cities United Way and United Ways of Minnesota, nonprofit partners, community leaders, and legislators with tools and resources to help support ALICE households in our state. We will be bringing together stakeholders from across the state to share new ideas, policy innovations and best practices to help ALICE. We believe that collectively, we can use ALICE data to advocate for changes to improve the financial stability of ALICE families and their communities.

Learn More

• Check out the Minnesota ALICE report and county-by-county data: unitedforalice.org/Minnesota
• Donate to support United Way’s efforts to support ALICE and advocate for change.
• Help meet urgent needs in our community and volunteer with us.
• Learn more about ALICE in our press release.

The post New ALICE Report Reveals 36% of Minnesota Households Struggle to Meet Basic Needs appeared first on Greater Twin Cities United Way.

SAINT PAUL, MN (Sept. 10, 2024) — Though wages for the lowest paid jobs have risen across the country at the fastest rate in four decades, the number of households struggling to get by in Minnesota grew from 2021 to 2022. As a result, a total of 834,343 households or 36% were living paycheck to paycheck, according to a new report, “ALICE in Minnesota: A Study of Financial Hardship,” from Greater Twin Cities United Way, United Ways of Minnesota, and their research partner, United For ALICE. That calculation includes 233,779 Minnesota households in poverty as well as another 600,564 defined as ALICE.

ALICE^® is an acronym for Asset Limited, Income Constrained, Employed, and it’s a way of understanding families, neighbors, and colleagues who work hard, earn above the Federal Poverty Level, but don’t make enough to afford a basic household survival budget. ALICE workers include childcare providers, home health aides, cashiers, retail clerks, waiters, nonprofit professionals and others — those working low-wage jobs, with little or no savings and one emergency from poverty. As members of the United Ways of Minnesota, our organizations recently joined the United for ALICE network — a national movement to raise awareness about this growing but often hidden population in our communities. 

ALICE in Minnesota: A Study of Financial Hardship shows that while wages were increasing, so too were costs. For a family of four with an infant and a preschooler, the basic costs to live and work in Minnesota, excluding tax credits, rose from $63,444 in 2021 to $77,304 a year later. Compounding the issue in 2022 was the loss of up to $15,000 in federal child tax credits and stimulus payments that this family had access to in 2021.

“While larger paychecks have provided some relief, the combined impact of inflation and the end of pandemic supports has continued to impact ALICE households here in the Twin Cities and across our state,” said John Wilgers, President and CEO of Greater Twin Cities United Way. “This latest data underscores that, despite some progress, many ALICE families are still forced to make impossible choices to try to make ends meet.”

The findings in this one-year period are consistent with a more than decade-long trend: Since the end of the Great Recession, despite some ups and downs, the number of ALICE households in Minnesota has been steadily growing. From 2010 to 2022, the total number of households rose by 10%, households in poverty increased by 1% — and the number of ALICE households grew by 33%. 

“The data is showing persistent and widespread financial hardship — a red flag that the current system isn’t working for ALICE,” said Stephanie Hoopes, Ph.D., United For ALICE National Director. “Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and childcare that’s affordable, to inadequate community supports such as broadband internet.”  

Additional insights include: 

• From 2010 to 2022, people age 65 and over made up the fastest-growing age group in Minnesota — and the group with the largest increase (44%) in the number of households struggling to make ends meet.
• Racial disparities persisted in the rates of financial hardship; 60% of Black, 58% of American Indian/Alaska Native, and 45% of Hispanic households in Minnesota were either in poverty or ALICE in 2022, compared to 34% of white households.
• Food assistance continued to elude many vulnerable families in Minnesota. Partly due to the SNAP income eligibility level in the state (200% of the Federal Poverty Level), only 32% of all Minnesota households in poverty and 13% of all ALICE households participated in SNAP in 2022.

To read the report and access online interactive dashboards that provide data on financial hardship at the state, county and local levels, visit UnitedForALICE.org/Minnesota.

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About Greater Twin Cities United Way: Greater Twin Cities United Way unites changemakers, advocates for social good and develops solutions to address the challenges no one can solve alone to create a community where all people thrive, regardless of income, race or place. For more information, visit gtcuw.org and follow us on Facebook, X (Twitter), Instagram and LinkedIn.

About United For ALICE: United For ALICE is a U.S. research organization driving innovation, research and action to improve life across the country for ALICE (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 31 states and includes United Ways, corporations, nonprofits and foundations in Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.

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MINNEAPOLIS (Aug. 14, 2024) – Greater Twin Cities United Way (United Way) announced today the release of its 2023 Community Impact Report, which includes the results of its work with partners across the region. In 2023, United Way served more than half a million people, meeting urgent needs while making lasting change in the areas of housing, food, education and jobs.

To address immediate needs, United Way continued providing direct service through its 211 resource helpline and the 988 Suicide and Crisis Lifeline, grantmaking to local area nonprofits, and volunteerism engagement initiatives, such as Action Day. To create lasting change, United Way continued advocating alongside coalition partners for state investments in essential services, such as housing and child care; invested in innovative programs that focus on transforming systems; and launched Pathways Home, a new initiative aimed at preventing homelessness for youth transitioning from incarceration or foster care.

“In 2023, our collaborative efforts with local nonprofits, businesses, donors, volunteers, and advocates yielded meaningful results,” said John Wilgers, President & CEO, Greater Twin Cities United Way. “Together, we transformed lives by addressing immediate needs while also working tirelessly to dismantle barriers related to income, race, and place. Through our shared commitment, we’re building a future where everyone has the opportunity to thrive.”

Meeting Urgent Needs Through 211 and 988

Every day, people seeking help paying bills, finding food and locating other resources contact United Way’s 211 resource helpline. In 2023, United Way responded to over 342,000 requests to 211 from people across Minnesota – a 10 percent increase over 2022. Housing continued to be the most requested 211 resource, followed by utilities and energy assistance. Food was the third most requested resource – and the fastest increasing – likely due to inflation during 2023.

United Way also continued providing support as a local call center for the 988 Suicide and Crisis Lifeline. In 2023, United Way crisis counselors answered over 24,000 calls to 988 – a 36 percent increase over 2022 – providing emotional support for people experiencing thoughts of suicide, substance use or other mental health crises. Callers reached out for a variety of reasons, including needing a listening ear (81 percent), preventing a progression to suicidal thoughts (12 percent), and imminent crisis (7 percent).

Creating Meaningful Impact Through Volunteerism

United Way mobilized thousands of volunteers last year through essential supply drives, community volunteer events and more. In 2023, generous volunteers helped provide 45,000 students with backpacks full of school supplies so they can thrive in the classroom and 1,400 families transitioning from homelessness to stable housing with welcome home bins full of essential household items. Volunteers also assembled 13,000 culturally relevant food packs – the equivalent of 50,000 meals – so that families using neighborhood food shelves have access to familiar flavors and foods.

Making Lasting Change Through Innovation and Advocacy

Based on deep learning in community, in June 2023, United Way launched Pathways Home, a new initiative focused on preventing homelessness for those most vulnerable to experiencing it: youth who are exiting the foster care system and/or transitioning from incarceration. As part of the launch, United Way deployed $1.2 million to its first cohort of 11 nonprofit partners. With a focus on lasting change, Pathways Home is also convening those who hold power in the foster care and corrections systems to collaborate on meaningful solutions.

In 2023, United Way celebrated its most consequential advocacy agenda ever. Together with its advocacy coalition partners, United Way successfully advocated for new investments to promote stable and affordable housing – totaling more than $1 billion, the single largest investment in housing in Minnesota history. Other advocacy wins included the passage and implementation of free school meals; a historic $2 billion investment in the state’s childcare system and workforce; and a $1 million investment in Career Academies, a United Way initiative focused on career pathways for youth.

See more of the impact Greater Twin Cities United Way and its partners made possible in our report.

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About Greater Twin Cities United Way: Greater Twin Cities United Way unites changemakers, advocates for social good and develops solutions to address the challenges no one can solve alone to create a community where all people thrive. For more information, visit www.gtcuw.org and follow us on Facebook, X (Twitter), Instagram and LinkedIn. 

The post Greater Twin Cities United Way Announces 2023 Community Impact Results appeared first on Greater Twin Cities United Way.

Having had the opportunity to walk alongside our nonprofit partners and communities during my four years at Greater Twin Cities United Way, I look forward to continuing the momentum of our advocacy team – finding new ways to bring our communities into the legislative and policymaking process for lasting, positive change.

Advocacy can’t wait

This moment couldn’t be more critical. In the aftermath of the 2023 legislative session, we’ve seen significant impact from the sizable investments made by the state in areas like housing, food security, and early child care. These dollars are improving the quality of life for families and communities.

And yet, in conversations with our nonprofit partners and community stakeholders, we recognize that work is still needed to ensure the sustainability of policy changes and accessibility of funding.

Thankfully, there is a palpable energy for change among lawmakers and advocates – and the voices of our partners are helping chart a new path forward for lawmakers. Simply put, it’s an exciting time to be advocating at the Capitol.

This year, we were pleased to see several critical policy shifts and targeted investments that we championed at the legislature:

• Increased funding for Minnesota’s Family Homeless Prevention and Assistance Program, helping more families who are at risk of homelessness stay in their homes
• More than $50 million in funding for childhood literacy and pre-kindergarten programs, ensuring more young learners have the opportunity to succeed
• $50 million in Housing Infrastructure Bonds to promote multifamily housing development, deepening our state’s investment in affordable housing

Uplifting trauma-sensitive child care

Through our 80×3 initiative and our partnership with the Start Early Funders Coalition, United Way has been a vocal advocate for supporting children in their earliest years through new funding streams and policies to support trauma-sensitive care in our state’s early child care sector.

This year, these efforts culminated in a consequential policy shift. Starting in July, the Early Learning Scholarships Program will expand its priority list for children dealing with traumatic circumstances, making scholarships available for more families. This expanded priority list will soon include children with a parent who is incarcerated, has experienced domestic violence, is undergoing substance use treatment or is receiving mental health treatment. These scholarships will make high-quality child care and education more affordable and accessible for families impacted by adverse childhood experiences – putting additional state resources in place so that more children can have a great start.

And despite a last-minute date change due to heavy snow – always a risk when planning a March event – we were overjoyed to once again bring together more than 350 families, educators and child care allies to sing, dance and speak up for children and families at this year’s Advocacy for Children Day in April. In partnership with Kids Count On Us, we successfully facilitated more than 90 follow-up visits between community members and lawmakers – helping maintain legislative momentum for children and families this session.

Learn more about Advocacy for Children Day from our 2023 video.

Links in the chain of progress

It’s easy to talk about this work in terms of short-term wins – in new dollars or new programs. This year, and in past years, we’ve had much to celebrate.

And yet, we know that lasting change is not a short-term project. Strong advocacy depends on deep, relational work – the kind of engagement that’s difficult to summarize in a few bullet points. But this work is worth celebrating, too.

The relationships we’ve made with lawmakers around key United Way priorities such as 211 and homelessness prevention, for example, are already spurring exciting conversations about what’s possible in 2025 and beyond.

And while it is easy to focus our attention on the spectacle of the legislative session, we know that true advocacy happens year-round. I am excited for Greater Twin Cities United Way to continue to show up in new spaces and at new policymaking tables to pursue our vision of lasting change.

You can come along with us on this journey by connecting with us on social media for action alerts, advocacy events and other ways to get involved. You can also help support this work with a gift to our Community Impact Fund – investing in advocacy to create lasting change and supporting the changemakers who make it possible.

Stay Connected

• Join us on June 6 at the Science Museum for the 2024 Early Childhood Legislative Briefing, celebrating this session’s accomplishments with lawmakers, community advocates and United Way leaders.
• Learn about upcoming advocacy events, action alerts and other ways to join us by following Greater Twin Cities United Way on Facebook, LinkedIn and X (formerly Twitter).
• Make a gift to our Community Impact Fund today.

The post Advocacy Insights: Our Impact at the Legislature in 2024 appeared first on Greater Twin Cities United Way.

MINNEAPOLIS (Jan. 25, 2024) — Greater Twin Cities United Way (United Way) today unveiled its policy priorities and advocacy agenda for the 2024 Minnesota state legislative session. Informed by the input of more than 100 nonprofit partners, coalition partners, staff and other key stakeholders, the agenda focuses on policies and funding that promote safe and affordable housing, provide young people with pathways to high-wage employment, and remove barriers to individual wealth-building. New this year, United Way is also seeking funding to widen the reach and accessibility of its 211 resource helpline.

United Way’s four lead advocacy issues for the 2024 legislative session are:

• Remove barriers to safe, affordable housing, by prioritizing populations at highest risk of homelessness.
• Provide young people the tools to graduate high school in a position to enter high-wage, high-demand careers through career pathways programs and high-quality out-of-school programs.
• Remove governmental barriers to wealth-building opportunities for families and individuals to achieve economic stability.
• Secure sustainable funding for United Way’s 211 resource helpline to provide reliable access to statewide services.

“The transformative investments that were accomplished during the last legislative session are already making an impact in our communities,” said Shannon Smith Jones, Senior Vice President of Community Impact at Greater Twin Cities United Way. “Building on these achievements, lawmakers have a critical opportunity to meet the needs faced by our communities through the establishment of new support systems in areas like housing and education.”

United Way recently surveyed its nonprofit partners and other stakeholders to better understand community needs and what issues to support at the Capitol. This information, coupled with real-time data from United Way’s 211 resource helpline and 988 Suicide and Crisis Lifeline, informs United Way’s policy and advocacy agenda.

“This agenda responds directly to the important issues raised by our advocacy partners and stakeholders over several months of sustained engagement,” said Susan Carter, Director of Advocacy and External Engagement at Greater Twin Cities United Way. “Their perspectives have deeply informed the common-sense policy and funding shifts we will be advancing this year at the Capitol.”

Learn more about Greater Twin Cities United Way’s 2024 Policy and Advocacy Agenda.

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About Greater Twin Cities United Way: Greater Twin Cities United Way unites changemakers, advocates for social good and develops solutions to address the challenges no one can solve alone to create a community where all people thrive. The organization serves the community through five key offerings: Crisis and Information Support (211 resource helpline, 988 Crisis and Suicide Lifeline), innovation initiatives, nonprofit partnerships, advocacy work with legislators, and business and individual donor partnerships. For more information, visit www.gtcuw.org and follow us on Facebook, X (Twitter), Instagram and LinkedIn.

Media Contact: Sam Daub, Greater Twin Cities United Way, sam.daub@gtcuw.org, 612-340-7425

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