Economic Mobility Pilot distributes cash payments
Randomly selected lower-income households in Fairfax County are receiving cash payments as part of a pilot program to promote economic mobility.
The Economic Mobility Pilot is distributing monthly payments of $750 to 180 families that that earn more than the federal poverty level but less than the basic cost of living in Fairfax County.
The families can use the cash for whatever they need. The pilot also includes optional financial wellness training and workforce development coaching.
Karla Bruce, who recently retired as Fairfax County’s chief equity officer, gave an update on the program to the Board of Supervisors’ Health and Human Services Committee on Oct. 15.
Direct, unrestricted cash payments to targeted households reduce financial instability and provide a pathway to upward mobility and prosperity, Bruce said.
Among the households selected for the pilot, 33 percent live in the Mount Vernon area, 17 percent live in Bailey’s Crossroads, and 12 percent live in Annandale. The rest are in Sully, Springfield, Herndon, and Reston.
Forty percent of the households are Hispanic/Latino, 25 percent are Black, and 13 percent are Asian.
According to the United Way, 23 percent of Fairfax County households are walking a financial tightrope. They’re earning between 150 percent and 250 percent of the federal poverty limit, but one unexpected bill or emergency could lead to financial hardship and poverty.
The pilot focuses on what the United Way refers to as ALICE households: Asset Limited (no safety net in times of crisis), Income Constrained (their income falls short of the cost of essentials), and Employed (working yet not earning enough). The participants must have at least one child under 16 living at home.
The program started in October 2023 and will end this December. The funds come from the American Recovery Plan Act and the county’s Human Services Council’s Innovation Fund.
George Mason University is conducting a research study of the Economic Mobility Pilot to understand the impact of unrestricted cash payments on the economic and social well-being of working households. Preliminary findings are expected to be issued in spring 2025.
Where does the other 22% of the $1.6 million annual payout go to?
Please..just call it ,”giving my money to someone else” like it is…and the Fairfax DEI (another waste of my money) person commented that these payments help people not work two jobs. What’s wrong with working two jobs to climb the economic ladder? I did it for about 40 years and like my results.
This is a great program. I’ve heard this sort of thing makes a huge difference in people’s lives and doesn’t require a million hoops for the providers or recipients to jump through, and results in long-term improvements in outcomes for these families. Data from this experimental program will inform best practices in the future.