The social welfare of ethnic minorities is a contested subject with a deep politicalized history in contemporary China. This article uses a new large dataset solely looking at ethnic minorities in China, to analyze the impact and outcomes that new urban social and welfare schemes – with notable attention to the basic medical insurance, and the minimum livelihood guarantee allowance (dibao) – play in the livelihoods of minorities. The data suggests that contrary to the pro-minority rhetoric of the state, minority participation in social welfare programs is predicated on the incentive set of local government officials. These findings have strong implications for constructing future social welfare policies, and understanding their potential differential impact on ethnic minority cohorts.