Fact Sheet Laboratories of Underfunding? State Financing for Antipoverty Efforts after the Recession - Summary
Nicholas Johnson
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States help finance most antipoverty programs, but there's a major flaw in this approach: in recessions, need goes up just as state revenues go down. The resulting budget gaps often lead to significant program cutbacks, even when caseloads are on the rise. Federal assistance during the recent recession helped states meet stepped-up demand, but funding is set to expire and unemployment is expected to remain high. Federal and state governments should repair this financing hitch now to protect antipoverty programs.
Research Areas Social safety net Taxes and budgets
Tags Low-Income Home Energy Assistance Program (LIHEAP) Welfare and safety net programs State programs, budgets State and local tax issues
Policy Centers Center on Labor, Human Services, and Population