A Tsunami of Volatility: The Impact of the Design and Implementation of CARES Act Supplemental Unemployment Benefits on Lower-Income Households
This report discusses the financial resilience strategies families used to manage gaps before benefits arrived, in addition to providing recommendations for how benefits can be better designed in the future to fit the financial lives of lower-income households.
The document examines the effects of the CARES Act supplemental unemployment benefits on lower-income households during the COVID-19 pandemic, highlighting that while these benefits were essential, their implementation led to significant income volatility and uncertainty.
Households faced abrupt job losses, delays in benefit delivery, and sharp income fluctuations, with many unable to build financial buffers. The report recommends policy changes for smoother benefit delivery and suggests that financial institutions can support vulnerable families through affordable credit, waived fees, and savings incentives.
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