In a state as wealthy as Washington, everyone should be able to put food on the table and pay their bills. However, policies and practices that have long prioritized the wealth of rich, landowning white men over the needs of working people mean that nearly one in three households do not have enough income to pay for the basics.

Many states, including Washington, are increasingly turning to unrestricted income assistance, or direct cash, to support people who are facing financial insecurity. Direct cash provides a flexible and effective solution for people to solve day-to-day financial challenges, avoid emergencies like losing their housing, and build a strong foundation for the future.

Our new report, “A vision for how direct cash can create an equitable foundation for all,” lays out our north star for cash assistance: Establishing an income floor through unrestricted direct cash so that everyone can meet their basic needs – regardless of their ZIP code, race, immigration status, or ability.

Research on the impacts of direct cash programs has shown that they lead to significant improvements in people’s health, housing stability, and employment outcomes. Additionally, when people have the flexible cash they need, our communities and economies benefit. Research on direct cash support in the form of tax credits has shown significant economic boosts. For example:

• Every dollar received in direct cash from the federal Earned Income Tax Credit injects up to two dollars into the local economy.¹
• Making 2021’s Child Tax Credit expansion permanent would yield a return on investment to local economies of more than $10 for every dollar spent.²

Direct cash assistance programs in Washington

While Washington state offers a variety of direct cash programs, these programs are under-resourced and do not reach everyone who needs support. Two of the largest direct cash programs, Temporary Assistance for Needy Families (TANF) and the Working Families Tax Credit (WFTC), need bold investment to make sure that people have what they need to put food on the table and keep a roof over their heads.

Additionally, guaranteed basic income (GBI)  – which provides targeted cash support to the people who experience the most systemic barriers to economic security – is an emerging policy solution that can supplement existing programs and transform the public benefit system to make sure people are thriving and not just surviving. For instance, as the following graphic demonstrates, a GBI program that provides monthly payments to households with incomes below 200% of the federal poverty level ($55,500 for a household of four; $27,180 for a single person) would cut poverty in half in Washington.

Click on graphic below to enlarge

Principles to follow when creating direct cash programs

To be most equitable and effective, direct cash programs need to be rooted in trust and dignity and provide meaningful income support to participants. To do that, direct cash programs should adhere to eleven principles. These include being community led, honoring tribal sovereignty and the leadership of Native people, and protecting cash payments from extraction and exploitation. Read about the 11 principles at a glance.  

Direct cash programs can be improved and expanded to create solid support for communities across Washington

Lawmakers have many opportunities to improve our current direct cash system and provide truly equitable, effective support. Our report outlines specific policy recommendations which have been informed by the recommendations of advocates. Policymakers can begin by:

• Investing in a statewide guaranteed basic income program so that more people statewide have a financial foundation to build on.
• Making bold investments in Temporary Assistance for Needy Families so that it provides adequate support to families facing financial hardship. This includes removing the 60-month time limit, increasing the grant amount so it is sufficient to cover basic costs, and removing work, job training, and education requirements, which often act as barriers to access.
• Expanding and improving the Working Families Tax Credit so that it provides substantial, monthly cash support for more people with lower incomes. This includes removing the age restriction that affects young adults and seniors without kids, so anyone 18 and older can qualify for the WFTC. Our state agencies can also work to fully integrate the WFTC application with the IRS’ Direct File program.

Learn more about Temporary Assistance for Needy Families through the Statewide Poverty Action Network’s Campaign for Cash.

Learn more about the Working Families Tax Credit in our report, “The Working Families Tax Credit should support more low-income households.”