Jun 4, 2026
When thousands of federal workers found themselves suddenly out of work after job cuts, many were left wondering how to pay for everyday expenses such as groceries, rent, healthcare and childcare.
For Baltimore resident Alex Zhu, the situation sparked an idea.
Advertisement
“I had a bunch of friends who worked in public and global health in the federal government,” Zhu, told Business Insider. “They all got laid off and were facing uncertainty.”
Instead of waiting for government aid, grants or a new job, 29-year-old Zhu created a grassroots unemployment insurance program funded entirely by neighbors helping neighbors.
No bureaucracy. No government involvement. Just people sharing wealth.
‘A thing we can do that will make us all better off’
So how does it work?
Members of the Baltimore Community Guaranteed Income Club pledge 7% of their monthly after-tax income. Using a custom formula, Zhu calculates the group’s average earnings and determines who falls above and below that threshold. Those who earn more send money directly to those earning less through payment apps like Venmo or Zelle.
The club launched in April 2025 following layoffs tied to the Department of Government Efficiency (DOGE).
In its first year, Zhu says the Income Club redistributed roughly $20,000 among members.
“The program that we run is functionally unemployment insurance,” Zhu said. “It serves two purposes: Helping friends who need it and also warming people up to the idea that this is a thing we can do that will make us all better off.”
Advertisement
What started with 20 members earning an average monthly income of about $3,400 has since grown to roughly 50 participants. Zhu hopes to eventually triple that number.
It may sound unusual, but the concept isn’t entirely new.
The Stanford Institute for Human-Centered Artificial Interest notes that entrepreneur Andrew Yang proposed sending every American adult $1,000 a month through what he called the “Freedom Dividend” during his 2020 presidential campaign.
Even Elon Musk has publicly argued that some form of government-funded income support may eventually be necessary as AI transforms the labor market.
Some cities across the U.S. have tested smaller-scale guaranteed income experiments, according to NPR. Programs have provided direct monthly cash payments to low-income families, young parents and vulnerable workers, sometimes with few restrictions on how the money is spent.
Advertisement
But large-scale government adoption remains a political challenge, which is one reason community-led efforts like Zhu’s have emerged.
According to Zhu, members who initially received support later found jobs and chose to remain in the club as contributors. Others used the extra money to cover essentials such as food, medication and household expenses when times were tough.
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What to know about wealth-sharing
Building a system where people are willing to share income with friends or even relative strangers requires strong social connections and a sense of community.
To strengthen those bonds, Zhu hosts regular meetups and encourages members to build relationships beyond the financial exchanges.
“The hardest part of this is the relational aspect,” Zhu said. “The way that we get people to join is mostly from trusted relationships. Hopefully, we can get to that point where we’re bringing people in from completely different circles, but the trust is a big part, and the community aspect is important.”
Even if you don’t see yourself joining a formal income-sharing collective, there are other ways to help without jeopardizing your own financial stability.
- Build your emergency fund first. Keep three to six months’ worth of essential expenses in a readily accessible account before committing money to helping others.
- Create a dedicated giving budget. Instead of making spontaneous donations, consider setting aside a fixed percentage of your income each month for charitable giving, family support or community initiatives.
- Support people in other ways. Even if you’re unable to give financial assistance, there are plenty of other ways to help. Reviewing someone’s résumé, making introductions or sharing job leads can make a meaningful impact.
- Be clear about expectations. Whether you’re helping family, friends or neighbors, clear communication can prevent misunderstandings and financial strain. If you’re lending money rather than giving a gift, make sure the terms are understood.
- Don’t sacrifice your retirement savings. Generosity is admirable, but avoid reducing retirement contributions or taking on debt to support others. Protecting your own long-term financial security allows you to remain generous over time.
For Zhu, the goal isn’t simply redistributing money. It’s proving that communities can create their own safety nets when traditional systems fall short.
And judging by the first $20,000 redistributed through his Baltimore experiment, at least some neighbors seem willing to bet that helping one another still works.
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
Freelance writer with an economic development and consulting background.
