cover image: How Additional Cash Payments Would Reduce Poverty

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How Additional Cash Payments Would Reduce Poverty

30 Mar 2021

Four major policies in the American Rescue Plan (ARP) will reduce the number of people in poverty in 2021 from 44 million to 28 million – shrinking the overall poverty rate from 13.7 percent to 8.7 percent. Additional $1,400 payments could further reduce poverty to between 6.4 and 6.6 percent, depending on whether all people in the US are included or whether payments are limited to citizens. Two additional $1,400 payments could reduce poverty between 4.9 and 5.2 percent. Drops in poverty would be greatest for Black and Hispanic households.
income and benefits policy center taxes and budget poverty, vulnerability, and the safety net

Authors

Elaine Maag, Kevin Werner

Published in
United States of America
Rights Holder
Urban Institute