Child Welfare & Direct Cash Transfers
This brief explores the relationship between economic hardship and child welfare involvement, examining how direct cash transfers (DCTs) can reduce child maltreatment and strengthen family stability.
Developed through the Resilient Families Hub under the federal Facing Financial Shock initiative, this report connects poverty reduction with improved child welfare outcomes, noting that 83% of families investigated by child protective services live below 200% of the poverty line.
It synthesizes research showing that income supports like TANF, the Earned Income Tax Credit, and flexible funding in prevention programs reduce child maltreatment, foster care placements, and child fatalities. The document concludes with case studies of direct cash transfer pilots in New York and Washington, D.C., and calls for continued research to assess how cash support can prevent child welfare involvement
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