Government safety net programs aim to protect families during tough times—before they fall into poverty. But rising unemployment, foreclosures, and economic distress are putting pressure on a system already in need of updates and repairs.
Urban Institute experts, building on decades of welfare reform research, evaluated public safety nets and proposed new initiatives to bolster work supports and help families gain a stable financial footing.
The poverty rate was 12.5 percent in 2007, meaning 37.3 million people were poor. For children under age 18, the poverty rate was 18 percent. But the poor aren't a static group. People may cycle in and out of poverty many times over the course of their lives. UI researchers examine how, why, and when families become poor; how long they stay poor; and what helps them escape poverty.
Since 1933, welfare has waned as an important part of the safety net, while tax credits have gained in importance. Anti-poverty programs have put a greater focus on work. Food stamps and food-related programs remain important to families in need.
Government also uses safety net programs and tax subsidies to promote economic mobility. But these poorly aimed supports often miss families most in need of a boost or even discourage them from building assets.
The federal government spent $746 billion on programs to promote economic mobility in 2006. Roughly 72 percent of that money went to employer-provided work subsidies, homeownership subsidies, and savings incentives—all of which flow mainly to middle- and higher-income families.
Low-income families tend to owe little or no taxes, so they can't get these tax subsidies. Their economic mobility benefits come largely from Pell grants, children's Medicaid, the State Children's Health Insurance Program, and the work support portion of Temporary Assistance for Needy Families—all tracked and assessed by Urban researchers.
Latest Research
Browse by Topic:
