Ann Arbor Times

A recent study led by the University of Michigan has found that government-funded child cash transfer programs significantly enhance child health outcomes. The research, published in The Lancet, reviewed programs from over 140 countries and highlighted the benefits of such initiatives.

Luke Shaefer, faculty director of U-M’s Poverty Solutions and professor of social work and public policy, stated that these programs are a proven method for countries to invest in the future health of their populations and economies. He emphasized that "child cash transfers are not a new idea that needs testing," citing success stories from various nations over more than a decade.

The study underscores UNICEF's stance on unconditional child benefits as a "foundational policy" for child social development. According to Shaefer, these benefits improve both child and maternal health and represent an essential investment for any nation looking towards its future.

Child cash benefit programs generally provide regular payments to households with children. These initiatives aim to alleviate poverty-related adversities, which can hinder children's access to healthcare and services. Healthier children tend to perform better academically and professionally, contributing to economic growth and reducing long-term public health costs.

In 2021, the United States implemented an expanded Child Tax Credit as part of its strategy against child poverty. This move resulted in a historic reduction in U.S. child poverty rates to 5.2%. Although this expansion has expired, local governments continue advocating for similar policies.

An example of such a program is Rx Kids in Flint, Michigan, co-launched by Shaefer and Mona Hanna from Michigan State University. Rx Kids provides unconditional cash support to pregnant mothers regardless of income. By the end of 2024, over $5 million is expected to be distributed among more than 1,200 families involved in the program.

Initial findings suggest Rx Kids has improved housing security, food access, maternal mental health, and reduced postpartum depression. In 2025, this initiative will expand within Michigan starting with Kalamazoo. Shaefer and Hanna aspire for this model or similar policies to gain nationwide adoption.

The study was included in “A Presidential Briefing Book” for the upcoming presidential administration. Co-authors include David Harris from Columbia University and UNICEF Innocenti Global Office of Research; Dominic Richardson from The Learning for Well-being Institute; and Miriam Laker from GiveDirectly.