By Abby Boshart, Photo: Ryan DeBerardinis/Shutterstock, Housing Matters, May 25, 2022
There have long been gaps in America’s complex web of social programs, but the pandemic highlighted just how limited our social safety net is. This was especially true for the country’s renters, with more than 11 million households already rent burdened, and many working in industries hit hard by layoffs (PDF). But federal housing assistance lacked the funding to stabilize these households before or during the pandemic.
These limitations led to slow, unequal federal relief distribution, frustrating many communities and prompting them to turn to a seemingly new concept: targeted direct cash transfer (DCT) programs. These programs came as one-time payments, like the federal Economic Impact Payments, guaranteed income programs, a refundable tax credit, or monthly payment programs.
Cash assistance isn’t new in America. It used to be a more prominent fixture in the social safety net through programs like Aid to Families with Dependent Children, but racist and classist ideologies have led to increased administrative burdens, work or responsibility requirements, delivery delays, and barriers to use. These design choices impose strict limits on available benefits and add onerous restrictions to benefit recipients, disproportionately hurting people of color, who are more likely to access these programs because of structural racism.
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