Stimulus Learning Session: Using ARPA Funds to Redesign Benefits and Advance Economic Mobility

This Learning Series Recap summarizes lessons from state and local government leaders on how the American Rescue Plan Act (ARPA) can be used to transform benefits delivery. The insights come from sessions on ‘Benefits and Economic Mobility’ and ‘Guaranteed Income Programs’, hosted and facilitated by the Government Performance Lab (GPL) as part of its Stimulus Learning Series. 

Improving public benefit systems using ARPA funds  

ARPA presents a once-in-a-generation opportunity to address systemic inequities laid bare by the pandemic and reshape public systems that support vulnerable communities. Recognizing this, state and local government leaders across the country are using stimulus dollars to reimagine public benefit systems, including food stamps, housing supports, child care subsidies, and cash assistance. Above all, ARPA funds offer a unique opportunity to tackle three major challenges of current benefit systems: 

• Barriers to access: Current systems can be difficult to access and navigate, especially for marginalized communities, meaning families miss out on billions of dollars in benefits.
• Ineffective supports: Siloed programs do not address multi-faceted needs and supports that are meant to improve self-sufficiency sharply drop off as earnings are increased. Narrowly-focused, in-kind benefits are not empowering families to exit poverty.
• Inefficient systems: Outdated technology and burdensome administrative requirements make it challenging for public sector staff to offer responsive support. 

In response to these challenges, leaders from state and local government agencies shared innovations they are testing using ARPA funds to redesign benefit systems in order to better serve vulnerable populations. Planned investments fall into three main buckets – expanding accessibility, offering more effective responses, and increasing efficiency – and include: improving customer service to reduce stigma, integrating services to meet needs holistically, testing more flexible cash transfer programs, and linking data systems to improve case management.

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