LANSING, Mich. (Michigan News Source) – Despite historic state investments, U.S. Census Bureau data indicates that Michigan’s poverty rate was higher than 13% last year, while the national average is 11.5%. 

The definition of poverty explained.

While the U.S. Census Bureau has been using the official poverty measure since the 1960s, the Bureau also has used the Supplemental Poverty Measure since 2011. It “defines poverty by comparing pretax money income to national poverty threshold adjusted by family composition.”

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It goes on, “The SPM extends the official poverty measure by accounting for several government programs that are designed to assist low-income families but are not included in official poverty measure calculations,” the report said later adding, “The SPM does not replace the official poverty measure; however, it does provide a  different metric of economic well-being that includes resources from government programs and tax credits to low-income families.” 

Tied with Ohio, Michigan’s poverty rate is 12th in the nation with some areas experiencing poverty levels in excess of 20%. 

What are the Census Bureau statistics?

According to the Census Bureau, this was the second consecutive year in which neither the rate nor the number in official poverty was significantly different than the year before, in part due to refundable tax credits and pandemic stimulus programs. 

“In 2022, the refundable tax credit expansions kept 6.4 million people out of poverty–one-third less than in 2021,” the report said. “The impact of this is especially apparent for children, as the SPM child poverty rate more than doubled to 12.4 percent in 2022.” 

Last spring, the Michigan Department of Labor and Economic Opportunity (LEO) launched the MI Impact Grant program to larger Michigan based nonprofit organizations that provide assistance to bring Michiganders out of poverty. 

“Michigan’s nonprofits work every day to uplift their communities and bolster the economy,” said Susan Corbin, director of LEO. “We are proud to offer this grant program to strengthen Michigan’s nonprofit ecosystem and deliver on our mission to close equity gaps and remove barriers to economic prosperity.”

Will grants help?

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Recently, the program delivered its first round of grants that it will give out between August 2023 and August 2025. 

“No one should have to choose between paying rent and putting food on the table for their families,” said Governor Gretchen Whitmer. “The MI Impact Grant provides several of Michigan’s largest nonprofits with funds to make a meaningful and direct impact in their communities. We remain committed to assisting individuals living in poverty and ensure Michigan families have access to the support they need.”

One of the groups that received a grant, Alternatives for Girls, was given $1.57 million to help guarantee income to women of color in Wayne County. The group was among 10 other large nonprofits who received a one time grant. Amanda Good, CEO of Alternatives for Girls shared her gratitude for the grant. 

“With these funds, AFG will pilot and evaluate a Guaranteed Income project for young women in the city of Detroit who are participants in Alternatives For Girls’ Workforce Development program,” said Good. “This critical income will support young women, who have experienced homelessness, trauma, and other hardships, alleviating each one’s immediate financial stresses and empowering her to improve her economic well-being and her future.”

According to Statistica, which provided a graph of Michigan’s poverty rate for the past two decades, the current rate is nearly 5% lower than it was at its peak in 2011 when the state’s poverty rate was 17.5%.