A mother feeding a baby that is being held by the father

FY 2025 DC Budget Cuts Will Compound the Impact of Expired Federal Aid

September 4, 2024

FOR IMMEDIATE RELEASE

September 4, 2024

Federal Pandemic Programs Provided Extensive Aid for Three Years, But Ended Abruptly, Leaving Low-Income DC Families Stranded

FY 2025 DC BUDGET CUTS WILL COMPOUND THE IMPACT OF EXPIRED FEDERAL AID

WASHINGTON, DC — The federal government provided nearly $30,000 in pandemic aid to a typical low-income family of three between 2020 and 2022 — an average of almost $10,000 per year, according to an analysis by the United Planning Organization (UPO).  That aid dwindled to $400 in 2023 and nothing in 2024.

Recent DC budget cuts will compound the rapid disappearance of federal aid. The number of DC households receiving monthly rental subsidies will decline next year, while emergency rental assistance will be cut by more than half. The mayor and DC Council allowed a 2024 supplement to SNAP benefits to expire next year, a cut of $80 in monthly food aid for a family of three.

“While it makes sense that pandemic aid would end, it must have felt like a rug being pulled out for thousands of DC families” said Andrea Thomas, President and CEO of UPO. “With deep cuts next year in DC programs that support low-income families, we’re going from a period of unprecedented economic security to a point where many struggling families have nowhere to turn to deal with rising rent and food prices.”

She added: “While we cannot make a straight-line connection, it only makes sense that this extreme financial stress is contributing to DC’s most pressing issues, like school truancy and public safety.”

The UPO analysis estimated the benefits a typical family of three received in food benefits, economic stimulus payments, the expanded Child Tax Credit, and two rounds of rental assistance. The estimates suggest a typical family received $28,300 in pandemic assistance from 2020 through 2022, or $9,400 per year on average.

Estimated Pandemic Financial Aid for A DC Family of 3 With Low Income
 202020212022TOTAL
Economic Stimulus$4,000$4,200  
SNAP$1,300$2,100$2,300 
Child Tax Credit $2,450$2,450 
Emergency Rental Aid $4,500$5,000 
Total$5,300$13,250$9,75028,300

UPO noted that nearly all these programs ended in 2022, with only a few months of additional SNAP allotments in 2023.

UPO’s analysis raises alarms over possible increases in hardship over the coming year. It urges District leaders to monitor demand for food assistance and the number eviction filings, and to be prepared to respond to growing needs with supplementary budget actions. In the longer term, the mayor and Council should work together to develop an economic security agenda — a plan to ensure that residents have stable housing and food security, along with programs to provide temporary financial assistance, such as emergency rental assistance, to residents facing a crisis.

“Our entire city suffers when so many families are in a constant state of economic stress,” said Ms. Thomas.  “One lesson of the pandemic is that we can improve economic security for neighbors with the lowest incomes. If the federal government won’t do that, DC leaders must work to fill the gap.”

VIEW FULL REPORT HERE

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About United Planning Organization

Many people throughout Washington, DC face financial insecurity. They turn to United Planning Organization for the tools that help them reach their full potential.

A nonprofit community development organization, UPO is the Community Action Agency that serves District residents with low incomes — we Unite People with Opportunities so they can overcome barriers and lift themselves into the middle class.

A staff of 400 helps 50,000 DC residents each year with programs including education, job training and placement, health, housing counseling, and strengthening families and communities (including partnering with developers to create new affordable housing). UPO also operates the District’s first Financial Empowerment Center, where all DC residents can receive professional, one-on-one, free financial counseling virtually and in person.

PRESS CONTACT: Zohar Rom           zrom@upo.org  (202) 238-4664   Cell: (202) 812-4001

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