Opinion | Rx Kids should help, but it can't do it alone

A year ago, Rx Kids, an innovative “cash prescription” program, launched in Flint. The program provides parents with a one-time payment of $1,500 during pregnancy and $500 monthly for the first year after birth. All pregnant persons in the city of Flint are eligible to enroll regardless of income, creating a straightforward program design that minimizes bureaucracy for both participants and administrators. 

The early successes of Rx Kids in strengthening family well-being have paved the way for its upcoming expansion in Kalamazoo next month. This is funded in part by $1.4 million annually from the $20 million allocated for the statewide program expansion from the federal Temporary Assistance for Needy Families (TANF) block grant, along with local government and philanthropic sources. The overall goals of the program are to improve infant and maternal health, as well as economic well-being.

Rx Kids offers immediate financial support to families that helps pay for essentials such as rent, transportation, and baby supplies. These unconditional cash payments provided by RxKids are helpful in supplementing other benefits received by low-income families and improving their economic situation during a time when household budgets are particularly tight. However, programs such as this work more effectively when they are combined with additional policies to promote individual and community prosperity. 

Interviews with participants in similar programs suggest additional programs that help parents maintain a connection to good jobs and continued secure income would be a highly effective complement to cash transfers. Implementing such policies in conjunction Rx Kids could help improve long-term outcomes for both parents and children. To support parents and build prosperous communities in Kalamazoo and across the State of Michigan, research suggests more can be done.

What are some of these research-backed policies?

Paid Parental Leave: A lack of paid parental leave remains a significant challenge for working parents. While the Family and Medical Leave Act offers unpaid leave, just over half (56%) of employees qualify. Furthermore, only 1 in 4 employees have access to paid family leave. While Rx Kids can partially offset this gap, it does not make job-protected leave available to all who need it. Research has shown paid leave policies can significantly improve maternal and child health outcomes, reduce poverty, and increase the likelihood that mothers return to work after childbirth.

High Quality Child Care: High-quality child care offers a substantial return on investment and  significantly boosts life outcomes for children and parents. One study estimated that investing $1 in high-quality child care is five times as effective in increasing children’s cognitive development as a dollar spent on direct cash transfers to parents. Three in five parents who either are not employed or work part-time would consider returning to full-time work if affordable, high-quality child care were available.

Complement Economic Development with Customized Job Training: Michigan’s job market continues to improve, but there’s still room for greater and more equitable growth. As in many areas in the US, there is a need to attract more businesses and create more accessible jobs that benefit lower-income residents and neighborhoods. Allocating more economic development assistance through programs tailored to the specific needs of individual workers and businesses, such as Michigan’s Going Pro Talent Fund, will help more businesses find skilled workers and help more people access better jobs. 

Address Barriers to Job Skills Training: When it comes to completing workforce training, many new parents face substantial obstacles, such as lacking access to transportation or reliable child care. Expanding initiatives like Neighborhood Employment Hubs—which offer centralized training and support services within local neighborhoods— is an established way for policymakers to help people overcome barriers and secure better employment opportunities.

Rx Kids is a ground-breaking program that deserves credit for its achievements. While cash transfers are important for increasing economic well-being and health, they are more effective when they are complemented with comprehensive strategies that strengthen parenting, invest directly in child development, and help people access good jobs.

The Rx Kids program makes a promising contribution. To further a more sustainable and equitable future for the state’s communities, Michigan and Kalamazoo should leverage this innovative initiative with evidence-backed policies that address the long-term needs of families to earn a living wage and support children’s healthy development.