How Funding Sources of Cash Transfer Programs Can Affect Participants’ Access to Safety Net Benefits

Direct cash transfer programs are increasingly popular as an efficient, equitable way to quickly get cash into the hands of people who need it while giving recipients agency over how they spend their money. Though consensus is growing on the impacts of cash transfer, there are still no agreed-upon mechanisms for how to fund them. This issue is complicated by the fact that where program funds come from can affect a recipient's eligibility for other benefits and can trigger a “benefit cliff.” This blogpost examines funding mechanisms used in cash transfer programs in Washington D.C., Philadelphia, and Los Angeles to understand how their respective funding models affect recipients’ benefits and outcomes.