As millions of Americans continue to struggle to make ends meet, there has been increased national attention to and growing public support for cash transfers as an effective way to get money into the pockets of people hit hardest by the pandemic and economic crisis. While not a new strategy, the pandemic has put a spotlight on the critical role of cash in supporting workers and families.
The third and final program in the EOF Fall Funder Learning Series, this webinar explored lessons learned from 2020 emergency cash program experiments as well as efforts to scale up effective strategies.
No-strings-attached cash transfers are a strikingly different approach to government assistance. Over the last several years, hundreds of guaranteed income pilot programs have launched in cities across the country, perhaps most famously in Stockton, Calif. Additionally, the pandemic spurred direct cash payments in the form of federal relief money. But there is more work to be done to advance policies around emergency cash assistance, to get funders on board with what some see as an unproven strategy, and to change the narratives about what people in poverty “deserve.”
Our country’s public benefits and social safety net systems were not ready for the pandemic. Many people were excluded or faced serious barriers to receiving the benefits to which they were entitled. Workers needed that direct cash to keep their families housed and fed, find stability while they got back on their feet, and keep working. There is a clear need for funders to support improvements and innovation to the infrastructure of how cash is distributed. This includes technology investments and organizing to get cash to workers who are outside of the traditional system, such as immigrant workers, day laborers, and sex workers.
Beneficiaries of guaranteed income pilots report improved stress, less fluctuation in income, decreased loan debt, and more benefits. We must listen to those who are most impacted by low and lost wages and poverty and invest in the strategies that best support them. Funders can support programs that provide flexible money that families can use at their discretion – and trust that they know where that money should go. Imperative to this work is narrative change. We must support organizations who are changing the harmful myths about people living in poverty that prevent effective strategies from becoming policy. And it’s important to fund trusted organizations who can help make sure community members are able to access their benefits and can get cash into the hands of those who need it most.
