YouthNPower Direct Cash Transfer Pilot: Year 1 Report

YouthNPower Direct Cash Transfer is an innovative program to assist youth transitioning out of foster care.

Unconditional cash support, an evidence-based intervention that is used to aid people in poverty across the world, is increasingly being used in the United States in the context of family well-being, homelessness, and child welfare. These programs are predicated on the assumption that individuals and families know best how to allocate resources to meet their needs.

In New York City, the Direct Cash Transfer (DCT) pilot was designed and implemented by YouthNPower: Transforming Care, a collective that includes young people with lived expertise in the child welfare system, researchers, policy advocates, and organizers from the Children’s Defense Fund-New York, the CUNY Graduate Center’s Public Science Project, the Center for the Study of Social Policy, and New Yorkers For Children. The DCT pilot provided 100 youth transitioning out of foster care in New York City with $1,000 per month for 12 months beginning in June 2023.

This report presents the findings of CIDI’s study of the DCT pilot. It is one of the first studies to use administrative data rather than self-reported information to compare the experiences of the treatment group youth who received the unconditional cash payments with the experiences of youth in a comparison group who received no such payments during the year of DCT. The study utilizes data from NYC Public Schools, Administration for Children’s Services, Human Resources Administration, Department of Homeless Services, Department of Youth & Community Development, and Department of Correction.

Findings

The DCT pilot had a positive impact on formal employment for youth in the treatment group, with no other significant measurable effects. The study found that that during the 12 months of the DCT pilot, when participants were receiving unconditional cash payments, a greater proportion of those in the treatment group were engaged in the formal labor market by earning taxable income compared to those in the comparison group. There were no other significant differences between the two groups in their receipt of Unemployment Insurance, Cash Assistance utilization, shelter utilization, justice system involvement, or child welfare involvement as a parent.

Impacts

This research demonstrates that unconditional cash grants are effective for transition-age youth who have experienced foster care, promoting stability without disincentivizing work and promoting economic well-being. An unconditional cash transfer program is a valuable intervention for youth transitioning out of foster care, providing assistance at a critical time in their lives.

Documents and Links

Download the YouthNPower Report

Partners

Children’s Defense Fund-New York
CUNY Graduate Center’s Public Science Project
Center for the Study of Social Policy
New Yorkers for Children