US poverty fell in April and May due to federal relief programs: study - Business Insider

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US poverty fell in April and May due to federal relief programs, even as COVID-19 ravaged the economy, new study suggests

Poverty in the US dropped in April and May, even as the economy cratered due to the pandemic, a new study from researchers at the University of Notre Dame and the University of Chicago suggests.

The remarkable findings highlight the broad reach of the federal intervention and its effectiveness in shoring up people's finances during a downturn, particularly low-income workers.Poverty in America fell in April and May, even as the US plunged into its worst economic crisis in nearly a century, a new study from researchers at the University of Chicago and the University of Notre Dame suggests.

The two key elements, researchers say, were the one-time, $1,200 stimulus checks sent to millions of households and the federal $600 weekly boost to unemployment payments under the CARES Act in March. Another key factor was expanding eligibility to gig workers to receive unemployment. Dr. Bruce Meyer and postdoctoral scholar Jeehon Han of the University of Chicago and Dr. James Sullivan at the University of Notre Dame said the decline in the poverty rate could be attributed to provisions of the CARES Act aimed at keeping struggling people afloat during the pandemic.

 

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