(Source: MIRS.news, Published 05/25/2025) Forty-one percent of Michigan households are living "paycheck to paycheck," and more than 1.1 million families in the state are both employed and considerably poor, a report affiliated with the Michigan Association of United Ways (MAUW) shows.
This week, the MAUW and its research partner, United for ALICE – with "ALICE" meaning "Asset Limited, Income Constrained, Employed" – posted that Michigan's share of "ALICE households" has been "steadily growing" since the Great Recession of the late 2000s.
Specifically, from 2010 to 2022, the number of working, financially constrained households climbed by 20 percent in Michigan, although the number of households in poverty fell by 6 percent and the total number of households grew by 6 percent.
The report includes child care providers, home health aides and cashiers as examples of ALICE workers.
Furthermore, it hones in on how, for a family of four, including an infant and a preschooler, the basic costs of living and working in Michigan – with tax credits not considered – have grown from $72,792 to $78,684 between 2021 and 2022.
When it came to things like food assistance through the state's Supplemental Nutrition Assistance Program, or SNAP benefits, 20 percent of all of Michigan's ALICE households participated in the program in 2022.
"Bigger paychecks helped, but inflation and the loss of pandemic supports converged to keep ALICE trapped," said MAUW President Kaitlynn Lamie in the May 22 press release. "This latest data is a reminder that while we have made some progress – including expanding our state's Earned Income Tax Credit (EITC) and funding 2-1-1, a (helpline) for any resident struggling with the costs of basic needs – our work is far from over."
In March of last year, the Governor signed legislation expanding Michigan's EITC to the working poor from 6 percent to 30 percent of the federal credit, in a way that retroactively applied to 2022 tax year filers.
Unemployment benefits, Social Security payments and child support do not count when calculating who can receive the credit.
Currently in Lansing, Democrats have proposed legislation shielding EITCs claims from being garnished, which is an automatic debt payments a court orders after a creditor successfully sues someone for unpaid debt.
Some lawmakers have also introduced a $5,500 yearly tax credit to assist households with the childcare expenses of children 3 years-old and younger. The proposal would follow the same income eligibility thresholds as the state and federal EITC programs.
The press release Friday did not mention a specific bill. However, it did reference an October 2023 survey dealing with families living below the "ALICE Threshold," or those reportedly unable to meet household "survival costs." Of those households, 37 percent cut their work hours when they couldn't find affordable childcare, and 28 percent took unpaid leave from work.
"The date shows persistent and widespread financial hardship – a red flag that the current system isn't working for ALICE," said Director Stephanie Hoopes of United For ALICE National Director. "Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and child care that's affordable, to inadequate community supports such as broadband internet."
