Journal article
Spending Responses to Direct Cash Assistance to Low-Income Adults
Basic income studies
09/21/2026
DOI: 10.1515/bis-2025-0025
Abstract
This paper examines individuals’ use of one-time direct cash assistance of $1,400 provided to over 2000 low-income individuals in 2022. Survey results demonstrate that nearly all recipients paid down debt or spent the assistance; very few recipients saved the check. This result differs from broad-based one-time assistance payments but is consistent with other assistance payments provided to low-income individuals. The main categories of spending are recurring bills, debt payments, food, housing or auto repairs, and transportation. The estimated marginal propensity to consume is 0.69. Individuals’ use of the assistance was primarily associated with household debt prior to receiving the assistance.
Details
- Title: Subtitle
- Spending Responses to Direct Cash Assistance to Low-Income Adults
- Creators
- David Frisvold - University of IowaGeorge Wehby - University of IowaChristopher Odinet - Texas A&M University School of LawJerry Anthony - University of IowaAin Grooms - University of Wisconsin–Madison
- Resource Type
- Journal article
- Publication Details
- Basic income studies
- DOI
- 10.1515/bis-2025-0025
- ISSN
- 2194-6094
- eISSN
- 1932-0183
- Publisher
- DeGruyter Brill
- Grant note
- Johnson County Board of Supervisors
We acknowledge funding from the Johnson County Board of Supervisors and from an anonymous foundation to the University of Iowa Center for Advancement.
- Language
- English
- Electronic publication date
- 09/21/2026
- Academic Unit
- Preventive and Community Dentistry; Health Management and Policy; Economics; Center for Social Science Innovation; School of Planning and Public Affairs; University College Courses
- Record Identifier
- 9985236436102771
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