ANN ARBOR, Mich. (Michigan News Source) – The city of Ann Arbor’s guaranteed income program launched in 2024 makes its final payment in December.

What’s uncertain is the future of the guaranteed income programs launched nationwide now that its primary funding mechanism is no longer available.

ARPA assistance.

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Like many of the guaranteed income programs that sprouted up in the aftermath of the pandemic, Ann Arbor’s was funded by $1.6 million from the federal American Rescue Plan Act (ARPA). The Ann Arbor City Council approved the expenditure.

The program selected 100 low-income people at random to receive $528 a month for 24 months and another 100 to get $25 a month. The participants had to be involved in some type of informal business or other small business. The money came “no strings attached” which meant it could be spent on anything.

The payments started January 2024. The Ann Arbor City Council received an update on the program at its July 28 meeting.

Will the program continue?

The update made no reference to whether the program will be continued with new funding or if similar programs are on the way.

Guaranteed income has been promoted as a long-term solution to poverty. The biggest obstacle was how to fund the programs. That was solved temporarily with the huge injection of federal money due to the pandemic. Many of the guaranteed income programs around the country have been funded by the $1.9 trillion ARPA.

Mayors for a Guaranteed Income was started in 2020 as a group of mayors promoting guaranteed income as a long-term solution to poverty. The cities of Lansing, Ann Arbor and Flint are members from Michigan.