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A third of Detroiters live below the poverty level. Could that change?

March 9, 2026

Detroit Mayor Mary Sheffield has appointed Luke Shaefer and Benita Miller to lead new efforts combating poverty and homelessness in a city where over 30% of residents live below the poverty line. Shaefer, formerly from the University of Michigan's Poverty Solutions initiative, will serve as chief executive of Health, Human Services and Poverty Solutions, while Miller, who previously worked in New York and New Jersey social services, will direct the newly created Department of Human, Homeless and Family Services. Their approach focuses on changing systems and policies rather than individual behaviors, drawing inspiration from programs in other cities and emphasizing initiatives like the Rx Kids cash assistance program that has already enrolled over 800 families.

Who is affected

  • Detroit residents living in poverty (over 30% of the population)
  • Young children in Detroit (half live in poverty)
  • Pregnant mothers and babies (through Rx Kids program - 811 families enrolled so far)
  • Homeless individuals and families in Detroit (experiencing 16% increase from 2023-2024)
  • Detroiters receiving food assistance and seeking tax preparation help
  • Families using shelter systems
  • Residents seeking public benefits like Medicaid and utility assistance
  • Detroit Health Department staff
  • Housing and Revitalization Department (budget reduced from $90.6 million to $45.9 million)
  • The 109 staff members of the new Department of Human, Homeless and Family Services

What action is being taken

  • Rx Kids program is distributing cash payments ($935,500 distributed to 811 families in the first three weeks)
  • Street outreach teams and Department of Neighborhoods staff are being trained as navigators to help residents apply for food assistance, Medicaid, and utility help
  • The city is partnering with agencies to help residents with tax preparation
  • The city sent text messages to Detroiters on food assistance about tax prep services (resulting in three-fold increase in sign-ups)
  • Shaefer and Miller are listening to community members, faith-based leaders, and nonprofit partners
  • The city is communicating with providers about services to prevent families from re-entering the shelter system
  • The Rides to Care program is providing transportation for Detroit moms to medical appointments

Why it matters

  • This initiative matters because it represents a fundamental shift in how Detroit addresses its persistent poverty crisis, which affects nearly one-third of its population and half of its young children. The approach focuses on systemic change rather than individual behavior modification, potentially creating lasting structural improvements that could help families access resources more easily and maintain stability. With homelessness increasing 16% year-over-year and two children dying while their family lived unhoused in 2024, the urgency of addressing these interconnected issues of poverty, homelessness, and housing affordability is critical to both saving lives and improving economic outcomes for Detroit's most vulnerable residents. The significant budget allocation ($41.4 million) and the expansion of the University of Michigan's Poverty Solutions partnership with the city signal a serious, data-driven commitment to tackling one of Detroit's most intractable challenges.

What's next

  • Sheffield's 2027 budget proposal is expected to show future funding amounts for all departments
  • The University of Michigan's Poverty Solutions partnership with Detroit is slated to expand
  • Shaefer is expected to take a two-year leave from the University of Michigan for the city job
  • The city's housing department will explore innovative strategies to increase affordable housing units
  • The city is exploring transitional housing options outside the shelter system, such as short-term rent contracts with case management
  • The city is looking into an infill strategy to create more homeowners
  • The city plans to explore providing land grants and technical assistance to developers to decrease construction costs

Read full article from source: bridgedetroit.com