A program designed to combat deep infant poverty by providing cash payments to pregnant mothers and their babies in Flint is set to expand to other cities across Michigan. Rx Kids, described by officials as a first-of-its-kind initiative, is working to ensure that mothers and their infants have the essential resources they need during a critical period in their lives.
Rx Kids provides pregnant mothers with $1,500 mid-pregnancy for essentials like food, prenatal care, cribs, and other necessities. After the birth of the child, families receive $500 a month for the first year of the infant’s life, totaling $7,500. This no-strings-attached program, which has no income restrictions for eligibility, was launched in January.
Recently, a $20 million allocation in the state budget has been approved, aiming to expand Rx Kids beyond Flint. The expansion is expected to reach five counties in the eastern Upper Peninsula, including Alger, Chippewa, Luce, Mackinac, and Schoolcraft, as well as the cities of Kalamazoo, Saginaw, Dearborn, Highland Park, River Rouge, and parts of Detroit. The budget now awaits Governor Gretchen Whitmer’s signature. If Rx Kids secures the necessary philanthropic dollars, the program could commence in these new locations as early as January.
Dr. Mona Hanna, director of Rx Kids and associate dean of public health at Michigan State University College of Human Medicine, leads this initiative. Dr. Hanna, a pediatrician known for identifying high blood lead levels among Flint children and helping to expose the water crisis, emphasizes that Rx Kids is a prescription for health, hope, and opportunity. In Flint, where nearly 78% of children under five live in poverty, Rx Kids has distributed over $2 million in cash to 828 families. Approximately 60% of these families have an annual household income of less than $10,000. With the financial assistance from Rx Kids, families can cover essential costs such as rent, utilities, food, and diapers, or even save for future needs.
This program is a generational effort with a focus on alleviating poverty through direct cash benefits. Evidence from the pandemic-era expanded Child Tax Credit, which provided $250 to $300 per month for each eligible child, shows that such payments can significantly reduce child poverty. The expanded Child Tax Credit reached over 61 million children and nearly halved child poverty in 2021. However, after these benefits ended, child poverty surged, with January 2022 seeing 3.7 million more children in poverty compared to December 2021. Rx Kids falls under the same umbrella of programs as universal basic income and guaranteed basic income, offering recurring, no-strings-attached cash payments, often aimed at those with the greatest needs.
The program’s expansion hinges on additional philanthropic funds. Lawmakers have approved $20 million in funding from the federal Temporary Assistance for Needy Families (TANF) program for Rx Kids. The five-year program in Flint relies on a blend of public dollars, including TANF, and philanthropic contributions from organizations such as the Charles Stewart Mott Foundation. To expand to other parts of the state, Rx Kids must secure matching philanthropic donations.
For example, Dearborn would receive about $3 million in state TANF funding, which could support the first four cash payments for lower-income families. To extend the program for the full 12 months and make it universally available, Rx Kids would need to raise an additional $9.5 million. Alternatively, a perinatal program providing the first four payments to all families, regardless of income, would require nearly $2 million in additional funds.
In Detroit, of the $20 million allocation, approximately $10 million in TANF funding is designated for the city, potentially benefiting around 3,000 babies annually. To replicate Flint’s model, an additional $32 million is necessary, while launching a perinatal version would require $7 million. Rx Kids will prioritize areas of greatest need in Detroit, likely based on the highest poverty rates by zip code.
In Detroit, about 49% of children under the age of five live below the poverty line, according to 2022 Census estimates. In River Rouge, the child poverty rate is nearly 68%. In Wayne County, 52% of households in 2022 earned more than the federal poverty level but still struggled to make ends meet, falling within the United Way’s ALICE threshold. This indicates they aren’t technically living in poverty but do not earn enough to afford basic needs in their area.
There is a strong case for investing in the period before and after pregnancy. The birth of a child often increases the risk of poverty, especially for first-time mothers. Providing cash during this critical time addresses immediate needs and redefines how society supports its residents. The city of Dearborn plans to allocate $1 million in federal funding to the program and is in discussions with local and state partners for further investments.
Rx Kids, which began in Flint, always aimed to expand its reach. By securing the necessary funding, Rx Kids can continue to provide essential support to mothers and their infants, fostering a healthier, more stable future for Michigan’s most vulnerable families.
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