One year into Ann Arbor's guaranteed income pilot program, the most common uses of the monthly payments were food, household supplies, and housing, according to a new report from the University of Michigan.
Starting in January 2024, the Guaranteed Income to Grow Ann Arbor (GIG A2) pilot program provided monthly payments of $528 to 100 entrepreneurs and gig workers who have low incomes and live in Ann Arbor. The two-year pilot program issued its final payment in December 2025, and U-M researchers continue to evaluate the program's impact.
A new report explores the difference the money made one year into the program, based on surveys and in-depth interviews with program participants. In addition to the 100 people receiving the monthly guaranteed income payments, another 100 Ann Arbor gig workers and entrepreneurs whose incomes are within 225% of the federal poverty line participated in the research study to offer a comparison point and allow for a stronger evaluation of the difference the monthly payments made.
GIG A2 was funded with $1.6 million of the city of Ann Arbor's federal American Rescue Plan Act funds, plus contributions from the Ann Arbor Area Community Foundation. City council selected Poverty Solutions at U-M to design, implement, and evaluate the pilot program. GIG A2 is unique among guaranteed income pilots in its focus on gig workers, entrepreneurs, and other self-employed workers.
The survey shows the top ways that guaranteed income recipients spent the money in 2024:
- Food, including groceries, eating out and take-out (68% of the 86 people who responded to the survey)
- Household supplies and personal care items (60%)
- Housing, including rent and mortgage (50%)
"Guaranteed income recipients can spend the cash however they want-there are no strings attached or expectations that they use the money a certain way. We see that people are largely using the extra money on necessities, including household supplies which cannot be purchased using food assistance that also is known as SNAP," said Kristin Seefeldt, principal investigator for the evaluation of GIG A2, faculty director of Poverty Solutions, and an associate professor of social work.
The GIG A2 evaluation is measuring the effect of the payments on a number of outcomes, including food insecurity, housing instability, and the ability to pay for utilities. After one year of monthly payments, the study found no statistically significant differences in experiences of food, housing, and utility security between the groups who did and did not receive the extra $528 a month.
"When we're talking about $528 each month, that only goes so far in Ann Arbor, where the cost of living is relatively high. If people are using the cash to address multiple needs, that would explain why we're not seeing significant differences in one single area," said Rebeccah Sokol, co-principal investigator of GIG A2 and an associate professor of social work.
Overall, the Ann Arbor residents involved in GIG A2-including those receiving the guaranteed income payments and those who aren't-are experiencing high rates of food insecurity (58% to 61%, compared to 37% of lower-income households nationally) and housing insecurity (53% to 61%). Food insecurity refers to sometimes or often worrying their food would run out or having their food run out and not being able to get more. Housing insecurity includes people who currently do not have a stable place to live and those who are worried they won't have a stable place to live in the future.
Despite these challenges, many guaranteed income recipients reported feeling a sense of relief and reduced stress thanks to the extra money. One person highlighted how the financial cushion was beneficial to their entrepreneurial efforts, stating, "It's hard to be inspired or to think creatively or to be a change maker when you're constantly just hustling."
Some people said the flexible cash allowed them to make positive memories with their children through experiences or resources they otherwise would not have been able to afford for their kids.
"GIG A2 participants emphasized that the program provided a sense of dignity. They did not feel ashamed for struggling economically or needing financial support. Health outcomes are linked both to financial situations and how people feel judged or stigmatized because of those situations. We need more programs that support people financially without making them feel judged," said William Lopez, co-principal investigator of GIG A2 and an associate clinical professor of health behavior and health equity.
