Ann Arbor, Michigan is running a social welfare experiment that gives low-income entrepreneurs and gig economy workers $12,672 a year. The initiative, dubbed “Guaranteed Income to Grow Ann Arbor,” is part of a universal basic income program aimed at improving living conditions for the city’s economically disadvantaged residents.
A distribution strategy has not yet been determined, but city officials are working persistently to make it accessible and efficient. While critics have raised concerns about the program’s financial sustainability, supporters say it is an essential step in reducing economic disparity and promoting self-sufficiency within communities. claims.
Eligible residents will receive $12,672 per year, divided into 24 monthly payments of $528 to cover basic necessities such as housing and food for their families. The funds have no spending limits, so recipients are free to use them based on their specific needs.
The program was launched in January and is scheduled to run until the end of 2025, targeting individuals with annual incomes below 225% of the national poverty threshold. This equates to up to $32,805 for an individual and up to $67,500 for a family of four.
Since 2019, more than 50 U.S. towns and cities have considered similar programs.
Basic income support for Ann Arbor entrepreneurs
These programs often use philanthropic funds rather than taxpayer funds and do not increase the burden on the general public. Past evaluations of these programs have shown positive effects such as reducing financial stress and improving mental health for participants.
Ann Arbor’s efforts include a wide range of entrepreneurs, from individuals with side hustles to small business owners, potential small business creators, and local artists and musicians who meet income criteria. This initiative aims to provide resources, guidance and financial support to help them grow and thrive.
The city allocated $1.6 million from Pandemic Recovery Assistance and donations from the Ann Arbor Regional Community Foundation to the project. The University of Michigan volunteered to cover the cost of studying the program’s outcomes. Implementing initiatives like this can direct significant aid to struggling local entrepreneurs, thereby strengthening the city’s dynamic entrepreneurial sector.
