Which Three Government Programs Provide Assistance to the Working Poor?

• Author: William Asher
• Posted: 2025-01-19

Many working poor Americans are eligible for government assistance. The most well-known assistance programs include Medicaid, food stamps, and Supplemental Security Income, which each prevent 3 million people from being in poverty. Although these programs are often small, they are still vital. For example, a single parent with two children would receive $5,372 in tax credits every year, up to a maximum of $17,530, as long as they meet the program's income requirements.

Federal government income security programs, including food stamps and fuel subsidies, are available to the working poor. However, they do not guarantee that these people will receive these benefits. In addition, child care subsidies and housing assistance are not guaranteed; they are often awarded on a first-come-first-serve basis. Medical assistance may be available to working poor families, although coverage for parents receiving cash assistance and TANF is generally limited.

The U.S. government has also implemented several programs that help the working poor. The Social Security Act, which was passed in 1965, established a national welfare system that guaranteed one-third of the total state welfare budget. These programs helped the poor and near-poor, and are often called "safety nets" because they protect the unemployed and the disabled from financial ruin. The programs are funded partly through federal tax dollars.

The EITC, Medicaid, and TANF are all programs provided by the government. TANF programs go by different names in different states, including CalWORKS in California. And while the federal government provides $1 for every dollar a state spends, it must spend the rest of its own money to avoid a fiscal penalty, also known as maintenance of effort. Thus, the funding structure of these programs differs a great deal from AFDC and TANF.