Time and time again, Democrats have touted unconditional cash transfers as the solution to lifting vulnerable American families out of poverty. Unfortunately, federal handouts have yet to prove effective for low-income families.
When the COVID-19-era expansion of the child tax credit cash payments ended after 2021, child poverty rates were expected to return to pre-pandemic levels of 9.7%. Instead, they skyrocketed to 13.7%. When Texas and Illinois piloted universal basic income over three years, the monthly $1,000 cash transfers reduced work outputs by 4-5%, plummeted annual household income, and failed to connect recipients with quality employment.
Recommended Stories
GIVING PARENTS CASH CAN HELP CHILDREN — BUT NOT ALWAYS
The verdict is in: Unconditional cash assistance disguised as a pathway to economic mobility fails to materially change the direction of impoverished families. Instead, universal basic income only balloons vulnerable Americans’ reliance on government welfare.
It’s time for our welfare programs to return to their original intent: to serve Americans well in their immediate time of need and incentivize employment to equip them with the life skills and practical tools to live independent of government assistance. The American dream is within reach for many impoverished Americans, but it will only be achieved by restoring the dignity of work, the satisfaction of earning a living, and the freedom of a fulfilling career.
The Trump administration is promoting work as the best way to move vulnerable families out of poverty, as evidenced by the historic One Big Beautiful Bill. Today’s launch of the Department of Health and Human Services’ redesigned Temporary Assistance for Needy Families pilot is another significant step towards encouraging employment, personal responsibility, and strong families through human service programs. The revamped TANF pilot will deliver new state-led solutions with demonstrable outcomes around employment, increased earnings, family stability, and reduced dependence on benefits such as TANF, Medicaid, and the Supplemental Nutrition Assistance Program.
Selected to participate in the TANF pilot by the Trump administration, Arizona, Iowa, Nebraska, Ohio, and Virginia are united behind this renewed national effort to build pathways that move families out of poverty once and for all.
During the six year pilot program, Arizona will engage employers that have vacancies for in-demand, well-paying positions and connect TANF participants with these opportunities; Iowa will improve referral coordination across services; Nebraska will strengthen connections to local jobs, including referrals to Nebraska’s TANF-funded Fatherhood and Healthy Marriage Initiative; Ohio will implement intensive case management services and financial literacy training; and Virginia will blend sector-based training, intensive case management, and employment engagement to support recipients as they gain credentials in fields like healthcare and skilled trades.
The five selected states span various geographies, demographics, and population sizes — a wide enough sample so that individual state successes can inform replicable best practices nationwide.
WELFARE STANDS IN THE WAY OF THE AMERICAN DREAM
Ultimately, the redesigned TANF program fosters long-term fiscal responsibility by tapering families off of welfare through employment pathways and support. Reducing government dependency is not only good for our economy, but for the moral and cultural fabric of our country and the resilience of our people. Determination, independence, and personal responsibility are cornerstones of the American spirit, ones that every citizen deserves a chance to exercise.
Pro-work is pro-family, and with the collaboration of Arizona, Iowa, Nebraska, Ohio, and Virginia, the new TANF program promises hope, independence, and a path toward prosperity to create healthy American families.
Andrew Gradison is the Acting Assistant Secretary at the Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services.