Fact Sheet Using Cash Payments to Reduce Poverty
Gregory Acs, Ilham Dehry
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A recent Urban Institute analysis projected that three provisions of the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, meant to stimulate the economy and reduce material hardship in response to the COVID-19 pandemic and recession, could keep 12.2 million people out of poverty between August and December 2020. One of those three provisions, providing Economic Impact Payments (“stimulus checks”) of $1,200 to most adults (and up to three dependents), would by itself keep a projected 8.3 million people out of poverty. But additional stimulus payments could substantially reduce projected poverty in the final five months of 2020, particularly among Black and Hispanic people. An additional direct payment would keep another 6.3 million out of poverty over that period.

Research Areas Social safety net
Tags Poverty Refundable tax credits Supplemental Nutrition Assistance Program (SNAP) Unemployment and unemployment insurance From Safety Net to Solid Ground Hunger and food assistance
Policy Centers Income and Benefits Policy Center
Research Methods ATTIS Microsimulation Model