I think the proposed idea is not supposed to allow people to simply invest the money and live off the proceeds. Just like when a VC or government grant agency

I think the proposed idea is not supposed to allow people to simply invest the money and live off the proceeds. Just like when a VC or government grant agency gives you money, you can't simply invest it and live off the proceeds in those cases either. With that ruled out, the $1-3MM is not really the recipient's money, and they are not really wealthy in the way you are comparing to other households.