Michigan City Using Rescue Money to Give Low Income Families $500 Per Month for 3 Years

Families in Ann Arbor, Michigan will be feeling a little relief thanks to a pilot program approved last week.

The city approved a plan to pay $500 per month for three years to 100 low-income households. The details of the plan include no restrictions whatsoever on how families can use the money.

Where is the Money Coming From

According to the US Sun, Ann Arbor received $24.1 million from the American Rescue Plan Act. The program which was rolled out by the Biden administration was earmarked for local communities to fund vaccinations and provide immediate relief to families suffering as a direct result of the COVID-19 crisis.

The city of Ann Arbor allocated $1.6 million of that distribution for the pilot program which was proposed in October of last year.

Compare this to Shiawassee County officials who last summer allegedly gave themselves raises after an influx of cash from the federal government.

Inspiration for the Program

The pilot program is based on a similar plan that was rolled out in Stockton California.

A study was conducted to determine the effectiveness of the program and found that recipients reported less stress after the first year. They were also able to find full-time work twice as fast as people in a control group who did not benefit from the assistance.

Details of the Plan

The plan will give 100 low-income families who qualify $500 each month for the next three years. This is a total of $18,000 per household.

The city has yet to determine when the program will launch.

"In the coming months, the city will work with community partners to identify program criteria and application details," Lisa Wondrash, Ann Arbor City Council communications manager told The Sun via email.