Michigan is expanding a program that gives direct cash payments to families struggling to make ends meet. The Rx Kids program, originally launched in Flint, is now expanding to five counties in the eastern Upper Peninsula.
How the Program Works
The program provides mothers with $1,500 during their mid-pregnancy. They can use this money for anything they need, like food, prenatal care, or a crib. After the baby is born, families receive $500 a month for the first year of the child’s life, totaling $7,500 in cash payments.
A Proven Success
According to H. Luke Shaefer, co-director of Rx Kids, a similar program in Michigan previously showed significant benefits for families. Child poverty rates dropped dramatically, and families saw improvements in food security and credit scores. However, when the program ended, child poverty rates spiked again.
“We saw food hardship among families with children fall to the lowest level ever recorded,” said Shaefer. “We saw the credit scores of families hit their all-time high. And then we reversed course and weren’t able to extend that past the one year, and we saw child poverty spike – the highest one-year increase in history.”
Addressing Child Poverty
The program aims to address the high rate of child poverty in Michigan. According to the University of Michigan, 17.6% of children under 18 live in households below the federal poverty line.
