Taylor: Pilot programs test effectiveness of unconditional cash in alleviating poverty

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Taylor: Pilot programs test effectiveness of unconditional cash in alleviating poverty
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Experiments continue on unconditional cash transfers, especially during and after...

San Antonio Mayor Nirenberg said recently that traditional poverty relief programs wrongly assume that those administering such programs “know everything that the family is facing, and that’s just not the case.”It’s midway through 2022, and we still haven’t solved poverty — not in Texas, not in the United States.It turns out that the federal government, under Presidents Donald Trump and Joe Biden, also endorsed that idea — to an extent we had never seen.

Even before that, San Antonio launched an even larger program combining public and private dollars. The San Antonio program was funded quietly in December 2020 and still has six months to run, until January 2023.One thousand families earning less than 150 percent of the federal poverty level were enrolled to each receive $5,108 over two years.

“It was important for us that UpTogether’s unique approach to cash transfers includes an emphasis on community — people building social capital on the UpTogether platform,” Dodd said. “That piece gets overlooked a lot, but we agree with UpTogether that community is essential.”The point of unconditional cash is that it empowers individuals and families to decide what they need most.

Many worry that unconditional cash will be squandered, but as Nirenberg reported, “with direct cash assistance, … we’ve seen the exact opposite. An overwhelming majority of participants in this program use their funds on basic needs — utilities, rent, mortgage and other bills.”

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