Pandemic aid buoyed millions of Michiganders for two years. What’s left?

Editor’s Note: This article originally appeared in MLive.

By Rose White

When COVID-19 first struck Michigan, Kim Kozlowski lost her job.

For nearly two years, the former administrative assistant for an Ann Arbor metal manufacturer leaned on state and federal aid to get by.

Expanded unemployment helped Kozlowksi remain financially stable until last fall. Food stamps filled her cupboards. And rental assistance came in the nick of time late last year as bills stacked up and utility companies threatened to shut off her water and cable.

“I’m back on track now. I’m finally out of the woods,” she said after starting a new job in January.

Kozlowski is one of millions of Michiganders who were who was buoyed by COVID-19 relief dollars that flowed to Michigan’s unemployment, food and housing assistance programs. About 2.4 million people received unemployment checks during this time and at least a million got extra grocery money each month.

Targeting financial hardships, the burst of aid in Michigan led to a nearly 2% drop in poverty and a 19% decrease in homelessness in 2020, federal and state data shows.

But as the labor market bounces back and the economy starts to recover, pandemic assistance is drying up: the $300 boost of federal jobless aid stopped last fall, stimulus checks burned off months ago and the end of monthly child tax credits led to a 41% increase in U.S. child poverty.

“(The pandemic) has really amplified and created more of a challenge for ALICE (Asset Limited, Income Constrained, Employed), but the reality is there were certain things that were helping that have now stopped,” said Mike Larson, president of the Michigan Association of United Ways.

As aid slows down and inflation balloons, it could be a blow to the roughly 38% of Michigan households who struggle to make ends meet. Even before COVID-19 upended the economy, the Michigan Association of United Ways found the cost of living was outpacing incomes for many Michigan families.

“Then you put that in today’s times, and those basic needs for all of us are outpacing even more. The reality is even though we have less unemployment, families are still struggling to pay for those basic type needs,” Larson said.

Feeding America West Michigan, whose mobile pantries deliver food to about half the state, has seen the need for food assistance “ebb and flow” during the pandemic, according to communications manager Molly Kooi. But as inflation recently hit 7.9%, causing the price of groceries and gas to skyrocket, the nonprofit is seeing an uptick in need.

“Right now, we’re seeing a spike in the need for food assistance because of heightened food costs,” Kooi said.

A February survey found that 51% of Michiganders are struggling with their monthly bills as inflation raises costs on nearly everything. And the number of Michiganders who reported having a “very difficult time” paying for bills increased 38% from June 2021 to February, going from 8% to 11%.

“We still have these types of roadblocks and then add on top of the reality of today with inflation and the price of gas and all of those things that really continue to put a hinderance on working families being able to manage,” Larson said.

With concerns about rising costs on housing and childcare, the Michigan Association of United Ways is pushing lawmakers to give a bigger tax credit for working families. Gov. Gretchen Whitmer proposed doing this in her State of the State address by boosting the Earned Income Tax Credit to 20%.

“That’s money that goes right into accounts for families. If their car breaks down, they’ve got money to fix that car so they can get to work,” Larson said.

As financial pressures intensify for many, here’s some pandemic-era assistance that is still available for Michiganders:

HOUSING ASSISTANCE

To thwart an eviction crisis, Michigan got $715 million in emergency rental and utility assistance from the federal government last year. Roughly 138,000 people have received an average of $4,366 since the COVID Emergency Rental Assistance program launched in March 2021.

Administered on a county-level, about 84% of the funding has been spent with about $115 million remaining. An additional $353 million is left to be appropriated to the Michigan State Housing Development Authority by the state legislature.

Kozlowski says she is “very, very blessed” for the roughly $3,770 lump sum she got in January to cover five months of rent and electric, heating, water and cable bills.

“We have seen firsthand the positive impact CERA has made on renters and landlords across the state,” said a statement from Kelly Rose, chief housing solutions officer at MSHDA. “Most importantly though, the program has provided housing stability to thousands of individuals and families – a necessity that is critical for success in nearly every other area of life for children and adults alike.”

Anyone who needs rental or utility assistance can apply for funding at michigan.gov/cera.

Michigan is also providing grants up to $25,000 to homeowners who are behind on mortgage or utility payments. The Michigan Homeowner Assistance Fund launched on Feb. 14 with $242 million in federal dollars available for applicants.

FOOD ASSISTANCE

Since May 2021, federal dollars have bumped Michigan SNAP benefits up $95 a month. Extra payments are tied to the federal Public Health Emergency which is set to run through April 16 at this time.

Michigan needs monthly federal approval to offer the additional grocery money, and payments were last OK’d through March.

Michigan Department of Health and Human Services doesn’t have a “definitive answer right now” how long expanded SNAP benefits will be offered, public information officer Bob Wheaton said in an email.

About 1.31 million people received food assistance from Michigan’s SNAP program in January. Wheaton says there was an “undetermined number” who benefited earlier in the pandemic.

Michigan food banks, like Feeding America West Michigan, are also continuing to provide charitable donations to families and individuals. A list of food banks can be found here.

“It’s been very hard to get an accurate picture of what’s going on because it’s so complex,” Kooi said.

PAUSED STUDENT LOAN PAYMENTS

For about 1.4 million Michiganders, a pause on federal student loan payments will provide relief until at least May 1.

Interest and payments have been frozen on the $51 billion debt held by Michigan borrowers since March 2020. Both the Trump and Biden administrations have repeatedly extended this deadline.

President Joe Biden is reportedly eyeing another pause as he considers a broader policy on student debt.