Protecting the health of children with universal child cash benefits

Abstract

This Health Policy examines the relationship between child cash benefits and child health, with the goal of informing future policy development in the USA. As of 2024, more than 140 countries have adopted large-scale, government-funded child cash transfer programmes. High-income countries more often adopt universal or near universal programmes, while lower-income countries often impose means tests or condition benefits on specific behaviours. Evidence on the adoption of child cash benefits from a broad set of nations finds that they can improve a range of child health outcomes, with the most robust evidence of health benefits occurring when delivered to children younger than 5 years and during the prenatal period. During the 2021 expanded Child Tax Credit (CTC), the USA briefly joined other high-income countries by introducing a near universal, unconditional child cash benefit, which led to a historic decline in child poverty. Although the expanded CTC expired, state and local governments and communities have continued to advocate for and implement policies like it. On the basis of this success and building on global evidence, the USA should adopt a permanent child cash benefit consistent with other high-income countries and the 2021 expanded CTC. Nations further developing their cash benefits should also give special attention to the prenatal and infant period.