Frequently Asked Questions
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What we are currently doing isn’t working. People regularly leave jail/prison without a pathway to secure stable housing, employment, means for transportation, or even enough food to eat or suitable clothing for the workplace. Cash assistance can help them obtain these basic necessities.
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Data from programs providing cash assistance, including to people returning from incarceration, like the Returning Citizens Stimulus, show that people spend the money on basic necessities like food, clothing, housing and transportation.
Findings from cash assistance programs also show that people receiving the funds are more likely to work full time.
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Reentry cash assistance is only provided to an individual one time. If they subsequently return to incarceration, they are not eligible to receive cash assistance again.
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There is a movement across the country of guaranteed income program pilots to provide cash assistance to people and households in need of additional financial support.
Data from over 30 of these programs show the breakdown of people’s spending:
42% on retail and services, e.g., clothing
28% on food and groceries
9% on transportation and housing/utilities, respectively
6% on financial transactions
4% on healthcare, education, leisure and miscellaneous expenses
Stockton Economic Empowerment Demonstration (SEED) in Stockton, CA was one of the first guaranteed income programs in the U.S. and data from the program shows cash assistance:
Enabled recipients to find full-time employment;
Alleviated financial scarcity creating new opportunities for self-determination, choice, and goal-setting; and,
Reduced income volatility that many households face
Key Messages
Reduces insecurity and Stabilizes
The relationship between poverty and recidivism is straightforward: people living in poverty are more likely to recidivate, because poverty decreases opportunities in the formal economy. By directly confronting the poverty that underlies many cases of recidivism, we can promote public safety and economic growth.
Arrives at the most critical time
The first 72 hours after release from prison are critical. By the time an individual has check-in with a supervising authority, they are likely already experiencing food insecurity. This is exacerbated by hurdles such as being released without the proper identification, or by outstanding justice-related debt.
Responsive and flexible
People returning from prison navigate similar challenges, but entirely unique physical, psychological and economic situations.
Cash payments are the most flexible approach we can implement to adequately address diverse needs.
Evidence based solution
A growing number of policy analyses highlight the impact of cash on improving reentry outcomes. People have utilized payments to get to work, to pay victim restitution and more quickly reach self-sufficiency. Early evidence also suggests that financial assistance upon release improves recidivism outcomes and can reduce rates of re-arrest by up to 30%.
Promotes self-sufficiency
Fostering independent decision-making is crucial for successful reintegration. Reentry cash not only empowers individuals by showcasing trust and respect, but does so without burdening them with excessive reporting or restrictions, promoting dignity in the process.
Results with lasting impact
Evaluations of direct-cash programs, such as the Returning Citizens Stimulus program, showed that positive results (such as increases in earnings and employment retention) were sustained by recipients, even after the payments stopped.
Model Language
The language in this section is a framework to use and tailor for individual states and/or state agencies. Every state/agency has differing structures for how statutory language, budget language, and administrative rules/policies are written. For statutory language in particular, it is important to consider what, if any, existing statutory language needs to be referenced or struck so as to eliminate any conflicting language.
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Appropriation. There is appropriated from the [INSERT SOURCE, E.G. GENERAL FUND] to the [INSERT AGENCY, e.g., DEPT OF CORRECTIONS] the sum of [INSERT AMOUNT ($XXXXXX)] in recurring funds each year to be used to establish the [NAME OF FUND/Gate Money Fund]. The legislature shall annually adjust the amount of the fund for inflation based on the [STATE] Consumer Price Index in accordance with the U.S. Bureau of Labor Statistics.
Establishment of Fund. The [NAME OF FUND TBD, e.g., GATE MONEY FUND] is established as a special revenue fund within the [INSERT AGENCY]. The Fund is established for the purpose of providing stipends to individuals recently released from incarceration. The Fund shall be managed by [INSERT AGENCY/DIVISION].
Administration of Fund. Beginning [INSERT START DATE FOR STIPEND DISTRIBUTION], the [INSERT ENTITY IDENTIFIED ABOVE TO MANAGE THE FUND] shall provide to all eligible incarcerated individuals immediately upon release from the custody of the [INSERT AGENCY].
Any other payment to which released individuals are entitled by law shall also be paid immediately upon release.
The provisions of this section shall not be applicable if a person is released to the custody of another state or to the custody of the federal government.
The [INSERT STATE AGENCY] and local governmental units shall exclude from consideration for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity, for a period of no more than 60 months, any financial assistance, including the funds provided for in this section, that is provided to a person by the [COMMISSIONER OR EQUIVALENT TITLE OF PERSON] upon release from a state correctional facility.
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A reentry cash pilot program shall be established to serve any persons released from state prison seeking to participate.
The program shall be administered by a nonprofit (501(c)3) organization.
The goal of the pilot program is to assess the impact of providing direct cash payments to the reentry population in combination with workforce services on reentry and employment outcomes, and to determine whether cash payments help lead to enrollment and completion of training programs.
The pilot program shall operate for no less than (suggested: 6) months with an additional follow-up period of 12 months with participants and relevant state agencies to allow for adequate data collection and assessment of outcomes for program participants.
For the purposes of this pilot program, the reentry population includes individuals who were previously incarcerated in a local juvenile or adult correctional facility, or previously incarcerated in a state juvenile or adult correctional facility and have been released within the last 12 months.
For the purposes of this pilot program, cash payments refer to payments from the nonprofit program administrator to participants to address basic reentry needs such as but not limited to housing, food, technological needs, and transportation. Payments will be associated with reentry milestones agreed to by the program participant and reentry service provider, but participants will not be restricted in how they can use the money.
The [INSERT STATE AGENCY RESPONSIBLE FOR BENEFITS, e.g., SNAP, TANF, etc] and local governmental units shall exclude from consideration for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity, for a period of no more than 60 months, any cash payments, including the funds provided for in this section, that is provided to a person by the [INSERT AGENCY ADMINISTERING GATE MONEY] upon release within the last 6 months from a state or local correctional facility.
$X million will be appropriated for this program in fiscal year XX.
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A reentry cash program shall be established to serve any persons released from state prison seeking to participate.
The program shall be administered by a nonprofit (501(c)3) organization.
The goal of the program is to assess the impact of providing direct cash payments to the reentry population in combination with workforce services on reentry and employment outcomes, and to determine whether cash payments help lead to enrollment and completion of training programs.
The program shall operate with a follow-up period of 12 months with participants and relevant state agencies to allow for adequate data collection and assessment of outcomes for program participants.
For the purposes of this pilot program, the reentry population includes individuals who were previously incarcerated in a local juvenile or adult correctional facility, or previously incarcerated in a state juvenile or adult correctional facility and have been released within the last 12 months.
For the purposes of this program, cash payments refer to payments from the nonprofit program administrator to participants to address basic reentry needs such as but not limited to housing, food, technological needs, and transportation. Payments will be associated with reentry milestones agreed to by the program participant and reentry service provider, but participants will not be restricted in how they can use the money.
The [INSERT STATE AGENCY] and local governmental units shall exclude from consideration for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity, for a period of no more than 60 months, any cash payments, including the funds provided for in this section, that is provided to a person by the [INSERT AGENCY ADMINISTERING GATE MONEY] upon release within the last 6 months from a state or local correctional facility.
$X million will be appropriated for this program in fiscal year XX.
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The following sums of money and those appropriated by any other sections of this act are hereby appropriated and available for encumbrance or expenditure for the use and support of the [STATE] each fiscal year beginning July 1 and ending June 30 annually. All of these appropriations, unless otherwise provided herein, shall be paid out of the General Fund [REPLACE WITH STATE SPECIFIC NAME IF APPLICABLE]
For Reentry Cash Program [$XXXXXX]
The funds appropriated are for expenses of a Reentry Cash Program including direct funds to program participants and administrative costs for operating the program for the administering agency/organization.
The appropriation shall be distributed via a competitive bid process annually [REPLACE WITH STATE SPECIFIC LANGUAGE FOR HOW GRANTS ARE ADMINISTERED] for an [X NUMBER] of recipients to operate the program to serve [X NUMBER] of program participants in a one year period.
RESOURCES & FURTHER READING:
Returning Citizen Stimulus (RCS) Implementation Guide (2022);
Paving the Way Home, an Evaluation of the Returning Citizens Stimulus Program (2022);
Baird, Sarah “The Effects of cash transfers on adult labor market outcomes;
Couloute, Lucius “The Case for Temporary Guaranteed Income for Formerly Incarcerated People”;
Ducker, Ernest “A Plague of Prisons: The Epidemiology of Mass Incarceration in America”;
Munyo, Ignacio “First-Day Criminal Recidivism, Journal of Public Economics”;