In an effort to promote economic justice and encourage entrepreneurship, the City of Ann Arbor in Michigan has launched an innovative pilot program called “Guaranteed Income To Grow Ann Arbor” (GIG A2). This groundbreaking initiative provides unconditional stimulus checks of $528 monthly to qualifying residents, supporting those who are struggling, newly self-employed, or gig workers.
With the third round of payments already distributed and more to come, the program is gaining positive attention for its potential impact on local economies and insights into the effects of guaranteed income on community well-being and economic development.
Contents
Eligibility
GIG A2 is a two-year pilot program that began issuing payments to 100 selected individuals earlier this year. To participate, applicants must meet several criteria:
- Residency in Ann Arbor
- Participation in the gig economy
- At least 18 years old
- Gross income not exceeding 225% of the federal poverty level
- Enrollment in or application for government benefits like SNAP or Pell Grant
These funds are disbursed on the 15th of each month, ensuring participants can consistently meet their essential needs.
Program Impact
Spearheaded by Kristin Seefeldt, William Lopez, and Rebeccah Sokol from the University of Michigan’s Poverty Solutions team, GIG A2 aims to do more than provide financial aid. The initiative includes a robust research component to evaluate how guaranteed income affects participants’ activities, business initiatives, health, and overall well-being.
To enhance the study’s rigor, 100 participants will be randomly selected from eligible applicants to receive questionnaires and tests without the monthly payments. This approach will generate accurate data to assess the program’s effectiveness and inform future policy-making in Ann Arbor and beyond.
Community Collaboration
The GIG A2 program exemplifies positive community engagement. It receives support from the American Rescue Plan Act (ARP) and funding from the City of Ann Arbor and the Ann Arbor Area Community Foundation. This collaboration involves local government bodies, academic institutions, and non-profit organizations.
Organizations like Friends in Deed, Express Your Yes Foundation, Groundcover News, Ann Arbor District Library, and the Entrepreneurship Center at Washtenaw Community College provided consultation for the pilot program. This multi-agency approach ensures the program is tailored to the community while leveraging diverse professional expertise. The participation of Steady, a platform for disbursing payments, underscores the program’s commitment to timely and appropriate financial support.
Future Prospects
The Guaranteed Income to Grow Ann Arbor program aims to reduce economic injustice and invest in local businesses. The $528 monthly payments serve as a financial lifeline for low-income minority small business owners and gig workers.
The experimental nature of the program is expected to provide valuable insights into the impact of guaranteed income on physical and psychological well-being. These findings could help establish similar programs across the United States. With participants receiving their third payment, policymakers, researchers, and community leaders eagerly await the results of this social experiment in economic safety and development.
The GIG A2 initiative holds promise for transforming local economies and supporting vulnerable populations, potentially serving as a model for other cities looking to implement similar programs.
FAQs
Who is eligible for GIG A2?
Residents of Ann Arbor in the gig economy with incomes under 225% of the federal poverty level.
How much do participants receive monthly?
Participants receive $528 each month.
What is the duration of the GIG A2 program?
The program runs for two years.
How are the payments distributed?
Payments are disbursed on the 15th of each month.
Who oversees the GIG A2 program?
The University of Michigan’s Poverty Solutions team spearheads the program.
