Although pandemic-era stimulus checks have ended, Ann Arbor, Michigan, is introducing a new guaranteed income initiative. The city has approved a pilot program, known as Guaranteed Income to Grow Ann Arbor, which will provide $528 monthly payments to low-income residents.
This program, which will run for two years, aims to support 100 eligible individuals. To qualify, applicants must be at least 18 years old, reside in Ann Arbor, and have an income at or below 225 percent of the federal poverty level. Additionally, applicants must be entrepreneurs, small business owners, or involved in selling their own goods and services.
The guaranteed income program was proposed by the University of Michigan’s poverty solutions team. Payments began in January 2024 and will continue until December 2025. The university is conducting research to evaluate the program’s impact on recipients’ businesses, health, and overall wellbeing. This data will be compared with a control group of individuals who meet the same criteria but do not receive the payments.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, highlighted the significance of Ann Arbor’s program. βCities across the country are observing how guaranteed income programs can transform the lives of those who qualify, helping to lift them out of poverty,β he told Newsweek. Beene noted that the research component of Ann Arbor’s program adds an extra layer of insight, potentially improving the programβs effectiveness and informing future initiatives.
Kevin Thompson, a finance expert and CEO of 9i Capital Group, pointed out that many cities are using surplus pandemic funds to implement similar programs. βCities with large reserve surpluses are seeking ways to redistribute this money to benefit their residents,β Thompson said. However, he raised concerns about the selection process for the guaranteed income, suggesting it might create feelings of unfairness among business owners.
βWhile a random selection process helps to address concerns about favoritism, it might not fully address the needs of businesses that are struggling to remain viable,β Thompson warned. He also noted that many businesses that survived the pandemic are facing instability and that some are on the brink of bankruptcy as pandemic aid wanes.
Overall, Ann Arborβs guaranteed income pilot program represents a significant step in exploring how such initiatives can support low-income individuals and stimulate economic stability.
Matt Pinner is a dedicated journalist for WVPrepBB.com, specializing in USA and crime news. With a keen eye for detail and a passion for uncovering the truth, Matt brings timely and insightful reporting to his readers. His work on WVPrepBB.com keeps the community informed and engaged with the latest developments in national news and criminal justice.
