How Additional Cash Payments Would Reduce Poverty

Brief

How Additional Cash Payments Would Reduce Poverty

March 30, 2021

Abstract

Four major policies in the American Rescue Plan (ARP) will reduce the number of people in poverty in 2021 from 44 million to 28 million – shrinking the overall poverty rate from 13.7 percent to 8.7 percent. Additional $1,400 payments could further reduce poverty to between 6.4 and 6.6 percent, depending on whether all people in the US are included or whether payments are limited to citizens. Two additional $1,400 payments could reduce poverty between 4.9 and 5.2 percent. Drops in poverty would be greatest for Black and Hispanic households.

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.
LATEST IN Poverty, Vulnerability, and the Safety Net
To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.