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A growing body of research shows that guaranteed income and other direct cash transfer programs improve the health and well-being of families. [1] Cash increases access to health care and improves the health of those who receive it. Importantly, across numerous studies and evaluations of guaranteed income pilots, recipients of direct cash transfers report improved mental health as a result of eased financial burden.
What is a Guaranteed Income? It’s cash for families who need it most. The cash is:
- Unconditional: There are no hoops families must jump through in order to qualify.
- Unrestricted: Families can spend the money however they need.
- Regular: Payments happen regularly to help families with rent, groceries, and other frequent expenses.
What the research shows:
Cash improves the health of young families
RxKids is perhaps the most innovative direct cash transfer aimed at improving the health of young families. For every baby born in Flint, Michigan, RxKids provides a one-time $1,500 payment during pregnancy, and a year of monthly $500 payments. RxKids has significantly reduced preterm births and low birthweight, studies show.[2] These findings should come as no surprise, as research has long found direct cash transfers can have positive impacts on health outcomes.[3]
Cash eases financial stress and improves mental health
Guaranteed income and direct cash transfer programs improve mental health outcomes for recipients. In 2021, the temporarily expanded federal Child Tax Credit was found to reduce depression and anxiety, particularly for Black, Latino, and other families of color.[4]
Cash can help families access mental health services that may otherwise be difficult to afford. For example, many mothers in the Abundant Birth Project – a guaranteed income program providing cash during pregnancy – report using funds to access therapy.[5] Families in the Stockton, California SEED program reported reduced mental distress.[6] In Georgia, families receiving cash were nearly 60 percent more likely to score as having “likely no mental disorder” compared to a control group.[7]
A guaranteed income would make Oregon families healthier
Lacking the resources to afford the basics takes a toll on Oregon families, forcing them to work longer hours and endure the stress that comes with financial instability. A guaranteed income would ensure every Oregonian has what they need to afford their basic needs, and improve their physical and mental health outcomes as a result.
Endnotes
[1] Becky Chao, et al., The Resilience Factor: Cash as a Tool Toward Better Health for Young Families, Economic Security Project.
[2] Sumit Agarwal, et al., Perinatal Cash Transfers and Birth Outcomes: A Population-Based, Quasi Experimental Study of the Rx Kids Unconditional Cash Prescription During Pregnancy and Infancy.
[3] Anna Aizer, et al., The Long Term Impact of Cash Transfers to Poor Families. See also Evelyn Forget, The Town with No Poverty: The Health Effects of a Canadian Guaranteed Annual Income Field Experiment.
[4] Akansha Batra, Kaitlyn Jackson, and Rita Hamad, Effects of the 2021 Expanded Child Tax Credit on Adults’ Mental Health: A Quasi-Experimental Study.
[5] Becky Chao, et al., The Resilience Factor: Cash as a Tool Toward Better Health for Young Families, Economic Security Project.
[6] Ibid.
[7] Ibid.
