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New Research Shows Cash for Moms and Babies Improves Health, Stabilizes Families, and Saves Millions

Rx Kids Delivers Health and Economic Gains for Moms and Babies in Flint, Michigan

 Two new studies reveal that Rx Kids—America’s first community-wide prenatal and infant cash program—is transforming health and economic outcomes for families.  The findings, published in the American Journal of Public Health and released by SSRN, offer compelling evidence of the impact of unconditional cash support for families during pregnancy and infancy—a critical window for child development and maternal and infant health.

 Significant Improvements in Birth Outcomes

In new research preprinted in SSRNresearchers from Michigan State University and the University of Michigan analyzed over 450,000 births across the state and found that Rx Kids led to healthier babies with dramatic improvements in birth outcomes in Flint,  a city where 59% of children live in poverty—more than triple the national average.

The population-wide study revealed that following the launch of Rx Kids in 2024, Flint saw an 18% drop in preterm births and a 27% reduction in low birthweight, when compared to the previous year and similar Michigan cities. These improvements resulted in approximately 29% reduction in NICU admissions, preventing nearly 60 costly hospitalizations annually and generating an estimated $6.2 million in healthcare savings. These healthier outcomes were linked to behavioral changes during pregnancy, including reduced smoking and increased prenatal care.

 Families Gain Financial Stability, Improve Mental Health

A second study published in the American Journal of Public Healthanalyzing survey data from more than 1,000 mothers from Flint and surrounding areas, shows that Rx Kids nearly eliminated evictions with a 91% decrease, reduced rent and mortgage debt by over $1,000 on average, and improved nutritional access. Mental health outcomes also improved, with postpartum depression screenings dropping by 14 percentage points. Mothers reported feeling more loved, respected, and hopeful—indicators of enhanced wellbeing. Trust in healthcare institutions rose by 10 percentage points, and trust in government increased as well, suggesting that Rx Kids is helping to rebuild the social contract for families.

 A Proven Model for Supporting Families

“These are not just numbers. These are babies who didn’t need intensive care. These are moms who did not suffer from postpartum depression,” said Dr. Mona Hanna, director of Rx Kids and associate dean of public health at Michigan State University College of Human Medicine. “We’ve long known that poverty is a public health crisis. This research proves that Rx Kids is a powerful prescription.”

 The findings indicate that the implementation of Rx Kids has been successful in improving maternal and infant health, strengthening family financial security, and improving maternal mental health and wellbeing. 

 “This isn’t a pilot. It’s a blueprint,” said Luke Shaefer, Rx Kids co-director, professor of public policy, and director of Poverty Solutions at the University of Michigan, “We’re showing that communities can scale unconditional support, reach nearly every family, and deliver measurable results—healthier babies, stronger mental health, and economic stability.”

 Rx Kids was designed to address the economic shock that accompanies childbirth—when income often drops and expenses surge. At the same time, this period marks a critical window for child development, with conditions in utero and early infancy shaping lifelong health and productivity. The program provides universal and unconditional support of $1,500 during pregnancy and $500 per month for babies for 6-12 months.

 Launched in Flint, Michigan in January 2024, the program has expanded to eleven communities across Michigan, reaching over 3,400 families with more than $14.5 million in cash prescriptions. 

Rx Kids is a program of the Michigan State University Pediatric Public Health Initiative, in collaboration with Poverty Solutions at the University of Michigan, administered by GiveDirectly.  

 Learn more at RxKids.org/Impact

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About Rx Kids: ♥️Rx Kids is a program run by Michigan State University-Hurley Children’s Hospital Pediatric Public Health Initiative in collaboration with the University of Michigan’s Poverty Solutions and administered by GiveDirectly. More potent than any prescribed pill, Rx Kids aims to improve health, hope, and opportunity. Science demonstrates the lifelong consequences of early adversity but also the promise of science-based, community-driven solutions. For many families, income plunges and poverty spikes right before a child is born and remains high throughout the first year. Built on the tremendous success of the expanded Child Tax Credit, which cut child poverty to its lowest level in recorded history, and in line with global evidence, Rx Kids boldly reimagines how we care for each other by walking alongside families during the challenging time of pregnancy and infancy.

 

 

 

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