The Impact and Aftermath of Pandemic Aid for Financially Struggling Families

From Unprecedented Investments to “You’re On Your Own”

From March 2020 to March 2022, as the global COVID-19 pandemic raged, the U.S. government passed sweeping pandemic relief packages totaling more than $5 trillion. In a qualitative study of pandemic-era government spending and its impact on families, the Better Life Lab and our partners at the New Practice Lab organized focus groups, wrote ethnographic case studies, performed in-depth interviews, and produced original journalism. We found that for a brief and powerful moment, many families living in poverty had a glimpse of what a more stable, financially secure life might be like. Of all the pandemic aid, participants told us they benefited most from rental assistance and eviction moratoria, improved food benefits, an expanded Child Tax Credit and flexible, direct cash payments, broader access to Medicaid, and expanded unemployment insurance benefits. However, the policies’ brevity and piecemeal nature meant many participants’ families continue to struggle to get by today.

Eleven families and one child care provider showed that contrary to prevailing poverty narratives, families work hard, often in full-time jobs, and simply cannot make ends meet. The study demonstrates the power of telling fuller narratives of poverty from more diverse storytellers to better understand the barriers to U.S. families thriving and the changes needed to overcome them.

The Better Life Lab would like to thank the Robert Wood Johnson Foundation for its generous support of this work.

Policy Definitions

Here’s a quick guide to the social supports that participants in our facilitated storytelling series said helped them the most—or, options they wished they’d had—throughout the pandemic. (You can read more robust descriptions of these programs in chapter two of our report.)

CTC: The Child Tax Credit is a tax benefit designed to support families with children by reducing their tax liability or providing a direct payment, depending on their income and eligibility. The CTC was expanded in 2021, offering significant financial relief to families.

SNAP: Supplemental Nutrition Assistance Program is a federally funded program that provides financial assistance to low- and no-income families and individuals to purchase food. During the pandemic, all benefits were increased by 15 percent, and every eligible household’s benefit was increased to the maximum possible for their household size.

P-EBT: A temporary program that allowed families with children who would have received free or reduced lunches if not for pandemic-related school closures to purchase food.

Unemployment Insurance (UI): A joint federal-state program providing cash benefits to eligible workers. The 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act created three UI programs that: 1) gave people receiving state unemployment benefits extra cash atop of their existing weekly payment; 2) expanded coverage to people who typically wouldn’t qualify—including part-time workers, independent contractors, gig workers, and those who are self-employed; 3) and extended the amount of time a person could receive unemployment insurance from 26 weeks to a maximum of 79 weeks.

Medicaid: A program providing health care coverage to low-income people in the U.S. Pandemic-era legislation lowered qualification requirements and automated re-enrollment so that most people who qualified for unemployment insurance and immediate family members automatically qualified for Medicaid through March 2023.

WIC: The Special Supplemental Nutrition Program for Women, Infants, and Children provides cash assistance, nutrition counseling, and breastfeeding support to married and single parents or legal guardians who live with a child under five. During the pandemic, waivers were offered to make requirements more flexible.

Direct Cash Assistance: A medley of local and federal programs and initiatives that provided financial aid directly to individuals or households to address unemployment, eviction risk, or other forms of material hardship. During the pandemic, this included stimulus checks, guaranteed basic income, emergency rental assistance, Navajo Hardship Assistance, and other direct payments to qualifying U.S. residents.

Emergency Rental Assistance: Federally funded programs initiated during the pandemic to help renters and landlords affected by COVID-related financial hardship. These programs were established under the 2021 Consolidated Appropriations Act and expanded through the 2021 American Rescue Plan Act.

Child Care Assistance: In 2021, Congress dedicated an additional $39 billion to child care, with $24 billion in stabilization grants to child care providers and $15 billion in discretionary funding. States used much of this funding to increase child care assistance payments to low-income families. However, most of our participants continued to handle child care independently throughout the pandemic as they could not access the subsidies.

Paid Leave: In 2020, the Families First Coronavirus Response Act required public employers and those with fewer than 500 employees to provide workers with two weeks of fully paid sick leave for COVID-related illness or caregiving duties. The provisions expired in 2021, and many of our participants did not benefit from these mandates