The research is clear: economic security is one of the strongest predictors of long-term well-being for families. And yet, too many families with young children lack economic security and experience high poverty levels. This puts babies and toddlers at a greater risk of chronic stress, adverse experiences and poor health. Research also shows that this is disproportionally true for children of color.
Cities can take action today with policies that will immediately begin to change the economic outlook for the children in their communities. The impact of early childhood poverty can last well into adulthood, but policies like the ones listed below can affect generational changes on some of your most vulnerable residents.
1. Supporting Material Basic Needs, Such as Diapers
Disposable diapers cost American families $100 a month on average per child and, according to a study by the National Diaper Bank Network, 47% of families needed more diapers than they had available in 2023. Unmet diaper needs can have physical, mental and economic consequences for children and families. To help address this, elected officials can make a proclamation during National Diaper Awareness Week, September 23 – 29, 2024. Another important step cities can take is to exempt diapers from their municipal sales taxes. As of July 2024, 26 states currently charge sales tax on diapers, ranging from 4-7%, and in many states, cities and counties can add additional tax. To help ease this financial burden for families, cities such as Pueblo, CO and Boulder, CO have exempted diapers from the city’s sales tax. San Francisco, CA became the first city in the nation to offer free diapers to all families on public benefits through their city-funded Diaper Bank program in 2022.
2. Offering Paid Family & Sick Leave
Offering paid family leave allows individuals to care for a family member in need or bond with a new baby. Municipal leaders across the country are prioritizing economic security for children and families by modeling best practices as an employer. For example, the City of Birmingham and the City of Chicago both have implemented 12 weeks of paid family leave for their city employees. In 2017, San Francisco started implementing the Paid Parental Leave Ordinance (PPLO), which requires employers to provide supplemental compensation to employees bonding with a child and builds off of California Paid Family Leave. Meanwhile, the City of Berkeley and City of Emeryville, CA are both examples of cities that have adopted paid sick leave ordinances allowing for predictable scheduling and job security for families.
3. Implementing Guaranteed Income Programs
Some cities are leading the way in providing guaranteed income programs targeting pregnant people and babies and with the goal of improving maternal and infant health outcomes. Rx Kids in Flint, MI became the first citywide maternal and infant cash prescription program in the nation when it launched in January 2024. This program provides no-strings-attached cash of $1,500 during pregnancy and $500 each month throughout a baby’s first year, with the goals of improving infant and maternal health, the economic and mental wellbeing of participants and community-wide outcomes. While this program is funded through a private-public partnership, the City of Flint has played a critical role with Mayor Neeley proposing and the Flint City Council approving a $1 million ARPA allocation.
The Philly Joy Bank, which is a guaranteed income pilot in Philadelphia, also launched in 2024 and will provide pregnant Philadelphians with $1000 per month with the goal of improving birth outcomes. The Division of Maternal, Child, and Family Health of the Philadelphia Department of Public Health serves as the backbone organization supporting Philly Joy Bank.
To learn more and collaborate on the topic of unconditional cash programs with other policy makers, advocates, practitioners and more, make sure to check out this Guaranteed Income Community of Practice.
4. Investing Long-Term with Children’s Savings Accounts & Baby Bonds
While the efforts listed above serve to provide immediate family economic security, Children’s Savings Accounts (CSAs) and Baby Bonds are both strategies that address long-term family economic security. CSAs are long-term savings or investment accounts designed to help young children save for postsecondary education. An example of a city-led CSA program is Boston Saves. This program helps families save and plan for their child’s future college or career by giving each Boston Public Schools (BPS) K2 kindergartner an account with $50. Additional examples and best practices around CSAs can be found in this NLC brief.
Baby Bonds are another asset-building strategy that is growing in popularity, and which is distinct from CSAs in that the government holds and invests money on behalf of a child and they were specifically designed to address the racial wealth gap. Baby bonds aim to ensure that all individuals can have access to funds to pursue wealth-building activities such as purchasing a home or starting a business when they reach adulthood. In 2021, Connecticut became the first state in the nation to pass Baby Bonds legislation and policymakers in several other states have proposed legislation. While proposals for these programs are primarily happening at the state and federal level, cities also have an important role to play in getting these measures passed. For example, local governments are better positioned than state and federal governments to build awareness of baby bonds and identify which populations may need extra outreach and support.
Upcoming Webinar: Family Economic Stability
Register now for NLC’s September 19 webinar on economic stability for child well-being. This webinar will showcase how local and state governments are working together to address and mitigate the current and future impacts of economic stability on populations such as pregnant women, infants, and toddlers in their communities
About the Author
From the Event: RFP 101 – Developing an Effective Healthcare Benefits Proposal
- NLC Partnerships
Diversified Funding for Health Equity and Wellbeing
Cross-Departmental Alignment for Health Equity and Wellbeing
Building Opportunities: How Chattanooga’s Blueprint Program Inspires the Next Wave of Economic Inclusion
- Rosanna Mulcahy
How San Francisco is Boosting College Enrollment for All Youth
- Patrick Hain
