ANN ARBOR, Mich. – A two-year guaranteed basic income pilot program in Ann Arbor that provided $528 monthly payments to entrepreneurs with low- to moderate-income has concluded with mixed results, according to researchers.
The program, the first of its kind in Michigan, distributed unconditional cash payments to 100 participants, while another 100 received $25 monthly as a control group.
The city partnered with Poverty Solutions at the University of Michigan to run the program and conduct the study.
The final payment was sent last December.
Poverty Solutions released findings from the program’s first year last month.
“We didn’t find that people who received the guaranteed income payment were any more or less likely to experience things like having trouble paying for their utilities or having them disconnected, experiencing food insecurity,” said Poverty Solutions Director Kristin Seefeldt.
Participants reported using the money primarily for:
- Food
- Household supplies and personal care items
- Rent and mortgage payments
- Clothing and shoes
- Utility bills
“The money just gave them breathing room,” Seefeldt noted.
“I was very grateful that I was one of the random selected,” said Kesha Sampson, a program participant who described the monthly payments as a reliable source of financial relief.
However, Sampson and other participants suggested the monthly amount could have been higher, given current economic conditions.
“The way things are right now, I feel like it definitely could have been a little more,” she said, suggesting a monthly payment of $2,000 would be more impactful.
Critics argue that guaranteed basic income programs are costly and ineffective. However, Seefeldt suggests that such programs can make a difference if properly structured.
“It would have to be of a significant enough amount that’s meaningful,” she said.
A final report will be completed by the end of the year and delivered to city council.
A city spokesperson said that officials will likely have more to say about the pilot and its future at that time.
“I definitely benefited from the program, and I would love to see them keep this program going,” Sampson said.
For more information, the Guaranteed Income to Grow Ann Arbor (GIG A2) Year 1 Report is available below.