Unconditional Cash Grants Show Promising Results for Young Adults Transiting from Foster Care in New York City

Strategic Insights -

Two comprehensive studies have revealed transformative outcomes from a direct cash transfer pilot program for young adults transitioning out of New York City's foster care system. The findings, which assessed the impact of 12 months of unconditional monthly cash grants, demonstrate significant improvements in various essential domains for healthy independence, including self-determination, education and employment, financial security, personal well-being, and community connections.

Key Takeaways:

  • 95% of participants reported an increased sense of control over their current decisions and the ability to make future plans after a year of support.
  • 90% of participants who were enrolled in school or a training program reported the money helped them feel less concerned about finances so they could stay in school during the pilot.
  • 75% of participants reported they could save money during the program's 12-month duration, which helped them weather financial emergencies.
  • Participants expressed improvements to their mental health (86%) and physical well-being (77%) after receiving a year of monthly payments.
  • Reduced Contact with Punitive Systems: The percentage of young people in the pilot reporting having contact with police during the prior year fell from 48% to 33% after 12 months of support.
  • CIDI's report found that a greater proportion of young people who received monthly cash payments were engaged in the formal labor market (69%) compared to a control group of young people who did not receive any money (48%).
  • The percentage of pilot participants who were parenting who reported having been the subject of a child protective services investigation before the pilot was 57%, which fell to 32% during the pilot.

Statistics:

  • 100 youth aged 18-22 in New York City received $1,000 per month in unconditional direct cash payments for 12 months.
  • 95% of participants reported an increased sense of control over their current decisions and the ability to make future plans.
  • 90% of participants who were enrolled in school or a training program reported the money helped them feel less concerned about finances.
  • 75% of participants reported they could save money during the program's 12-month duration.
  • 86% of participants expressed improvements to their mental health after receiving a year of monthly payments.
  • 77% of participants expressed improvements to their physical well-being after receiving a year of monthly payments.
  • 77% of participants shared money with family members or people in their community.
  • The percentage of young people in the pilot reporting having contact with police during the prior year fell from 48% to 33% after 12 months of support.
  • During the pilot, a greater proportion of young people who received monthly cash payments were engaged in the formal labor market (69%) compared to a control group of young people who did not receive any money (48%).

Sources:

  • "Starting to Live": Findings of a Direct Cash Transfer Pilot for Former Foster Youth in New York City, authored by the Children's Defense Fund-New York and CUNY Graduate Center's Public Science Project.
  • YouthNPower Direct Cash Transfer Pilot: Year 1 Report, authored by the Center for Innovation through Data Intelligence (CIDI) in the Office of the Mayor of New York City.