A new basic income program is rolling out in Michigan and Illinois, providing $500 per month to selected families—no strings attached. The initiative, led by the nonprofit UpTogether, aims to empower low-income households by giving them unrestricted cash, allowing them to spend as they see fit without government oversight.
Who Qualifies and How the Program Works
The program is targeted at families earning less than 80% of their area’s median income. Unlike traditional welfare programs, recipients of this initiative do not have to meet job requirements, undergo drug testing, or prove specific spending habits.
The payments began in September 2024 and will continue for a year, benefiting 103 families across the two states. Funded by private donors, the initiative operates separately from government assistance programs.
UpTogether emphasizes that the goal is not just financial relief but also to restore confidence and stability to families struggling to make ends meet. “It’s not just about the money. It’s about the confidence it gives you,” said one participant.
The Rise of Guaranteed Income Programs
Since 2020, various states and cities have experimented with basic income programs, particularly in response to the economic fallout from the pandemic. Cities like Evanston, Illinois, have implemented similar initiatives, often with a focus on addressing historical economic disparities.
While many of these programs have received federal funding, the landscape is shifting under the current administration. With President Trump’s new government taking a stance against diversity, equity, and inclusion-related initiatives, the future of such programs remains uncertain. However, UpTogether’s model, supported by private contributions, ensures its continuation for now.
Basic Income vs. Traditional Welfare: The Ongoing Debate
Advocates of guaranteed income argue that giving unrestricted cash allows individuals to spend more efficiently on their actual needs, reducing bureaucratic waste. Supporters also point to studies showing that such programs encourage work participation rather than discouraging it.
However, critics warn that expanding guaranteed income at a larger scale could be financially unsustainable, potentially discouraging self-reliance and increasing government spending. Some Republican-led states, such as Texas and Iowa, have moved to ban basic income programs, arguing that they create dependence on financial handouts.
Will More Cities Adopt This Approach?
Despite the controversy, guaranteed income programs continue to expand. Cities like San Francisco, Chicago, and Los Angeles have piloted similar initiatives, with some showing positive results in reducing financial stress for participants.
