DC Accepted Papers Paper:
Pennsylvania’s General Assistance Program: The Effects of an Unrestricted Cash Benefit on Philadelphia’s Most Vulnerable Residents
*Names in bold indicate Presenter
Cash transfer programs are increasingly viewed as an effective means of poverty alleviation in global settings, where research has shown that these programs can extend income in the short term and enhance recipients’ human capabilities in the long term (Son, 2008). The U.S.’s Earned Income Tax Credit (EITC), which provides a lump-sum refundable tax credit to qualified low-income workers, has been studied extensively, providing a base of knowledge on the effects of a short-term cash infusion. However, comparatively little data exist on how steady infusions of cash affect recipients’ economic stability and well-being. Pennsylvania’s General Assistance (GA) program was repealed in 2012, briefly reinstated in October 2018, and subsequently ended in August 2019. These policy changes provide an opportunity to study such indicators.
Through semi-structured interviews with 40 former GA recipients in the Philadelphia area, this study explores how recipients used GA funds, the interaction between GA and other social welfare benefits, and how receiving GA influenced their economic condition and overall well-being. The results reveal the importance of unrestricted funds to address basic needs that cannot be met by other social welfare programs, and illustrate a pathway between poverty and well-being. This study adds to a growing body of research demonstrating the value of guaranteed income programs, their potential to improve recipients’ quality of life, and the potential to reimagine and improve the social safety net.
