The Earned Income Tax Credit (EITC), one of the federal government’s largest antipoverty programs, has lifted millions of people out of severe poverty. While it offers a refundable credit at tax time to eligible workers with low incomes, it provides only a very small refund for single workers with no qualifying children. Paycheck Plus is a test of an EITC expansion for low-income workers without dependent children. This report presents final impacts from the test in Atlanta. The Atlanta Paycheck Plus Demonstration is part of the Subsidized and Transitional Employment Demonstration, a large-scale research demonstration designed to build rigorous evidence on the effectiveness of the latest generation of subsidized models.

A healthy relationship can play a critical role in establishing family stability for both adults and children. However, the COVID-19 pandemic has taken a toll on families nationwide with reports of higher rates of stress and declining marriages. Understanding the importance of healthy relationships in promoting economic stability among TANF recipients, the Office of Family Assistance (OFA) awards Healthy Marriage and Relationship Education (HMRE) grants for a variety of programs working to integrate skills-based relationship education into employment services. During this June 28, 2022 OFA webinar, HMRE grantees and subject matter experts discussed the impact of the COVID-19 pandemic on marriage and relationships. Webinar participants learned numerous ways HMRE grantees are engaging clients in programming such as family stability, healthy relationships, and economic security; explored how HMRE grantees adjusted during the COVID-19 pandemic, and how their clients benefited from the pandemic adaptations; and heard about how these grantees will utilize lessons learned from the COVID-19 pandemic to improve future efforts.

Webinar speakers included: Nikkole Abbas, Director of Family Support and Advocacy Services, Youth and Family Services of South Dakota; Robert Ketchum, Data Manager/Adult Educator, Youth and Family Services of South Dakota; and Mariana Falconier, Associate Professor of Family Science in the School of Public Health and Project Director of the University of Maryland’s TOGETHER program. The webinar was moderated by Robyn Cenizal, Project Director, Family Strengthening, ICF.

The American Rescue Plan temporarily increased the child tax credit (CTC) in 2021, including extending the credit to families who had not previously filed tax returns. The Internal Revenue Service automatically sent monthly payments of the CTC to families that had filed a tax return in 2019 or 2020. This report reviews the work of the Birth through Eight Strategy for Tulsa, an initiative to find low-income families who were likely to miss out on receiving the CTC. It also identifies how Tulsa’s existing network of service navigators worked to connect families eligible for the credit with tax preparation services to claim the CTC.

About 20 percent of U.S. American children grow up in poverty, and family income during early childhood is strongly associated with educational attainment and other social and economic outcomes. It can be difficult to separate the effects of family resources, however, from other aspects of a child’s early life, including family structure and stability, parenting styles, and the qualities of a neighborhood and schools. This research brief examines the effectiveness of unrestricted cash support for families facing economic hardship by estimating the long-run causal effects of cash transfers immediately after the birth of a first child.

Many low-income families are still bearing the brunt of the economic impact of the COVID-19 global pandemic. This qualitative study was conducted to understand the financial impact of the pandemic on low-income households, with a focus on how families used credit and debt to manage financial challenges during the pandemic. Study findings show that many low-income households of color are using credit products such as credit cards and dangerous payday loans to navigate financial hardships. This research also makes clear that struggling families are barely managing and remain stuck in a cycle of financial insecurity.

Economic assistance programs help provide low-income individuals and families with income stability, with benefits accruing not just to the families receiving assistance but to the economy as a whole. This paper reviews how cash assistance programs—the Earned Income Tax Credit (EITC), Child Tax Credit, and TANF—and other in-kind supports, such as SNAP, Medicaid, and housing assistance, serve as a backstop for unpredictable income, low income, and joblessness among low-income households who face economic transitions. The paper also highlights the critical role of the expanded Child Tax Credit, which provided families a monthly cash payment between July and December 2021.

This American Public Human Services Association and National Association of Counties hub hosts information and resources on tax filing for health and human services agencies that serve families eligible for the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). The EITC is a tax credit available to workers and families with low- to moderate-incomes. The CTC provides financial support to families with children.

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.

While most racial wealth gaps analyses focus on total asset holdings, intergenerational transfers, or disparities in specific assets, less attention has been paid to debt. Although there has been analysis of racial disparities in mortgages, and recent research has illuminated the role of student loans in widening the wealth gap between Black and white households, debt remains under-appreciated as a driver of racial wealth gaps. This brief explores links between racial disparities in debt and those in wealth and reflects findings from a literature review, interviews with experts, analysis of federal survey data, and focus groups and consumer surveys.