Safety Net

Invest in Women to Reduce Poverty

Women’s History Month is a time when we celebrate the incredible strides of women and girls in our country. But even as we continue to talk about shattering the glass ceiling and breaking down barriers, far too many women have their dreams of college and a successful life dashed by economic adversity.

To examine these struggles, The Women’s Foundation published Poverty Among Women and Girls in the Washington Region late last month. We found that well over 450,000 women and girls live near poverty or below twice the poverty line. Moreover, the cost of living in the Washington region makes it nearly impossible for these families to make ends meet without assistance. For instance, a family of three (one adult and two children) that lives at twice the poverty line earns only $39,060 per year; but in order to meet basic needs, a family of three living in the District of Columbia requires an annual income of more than $85,000.

We also found that there are strong economic disparities based on race, ethnicity, and gender. Across the Washington region, women have higher poverty rates than men. Among adults in the region, Black and Latina women face the highest rates of poverty at 15.6 and 14.2 percent, respectively.

Low levels of educational attainment and poverty are also strongly correlated. In the Washington region, women with less than a high school diploma are six times more likely to be poor compared to women with a bachelor’s degree. Indeed, education remains one of the surest pathways to building a foundation for economic security, but low-income women often experience barriers to access. That’s why proposals such as President Obama’s America’s College Promise which would provide free community college have sparked so much interest from organizations working to end poverty. But in addition to meeting the high costs of post-secondary education, women may also require transportation supports or dependable, quality child care in order to attend classes.

The challenges don’t end there. Once a woman achieves the qualifications and credentials she seeks, she may not earn the pay equivalent of her male counterparts. These factors are compounded when women serve as the sole head of their household, which is the case for more than 60 percent of families in poverty in the Washington region. When child care costs in the District of Columbia are 90 percent of earnings for low-income women, not only are families unable to advance out of poverty, they struggle simply to make ends meet on a daily basis.

Unfortunately, what we see happening in communities across the Washington region is also a national trend. But there are some key steps we can take to help women on the path to economic security, including: adopting critical policies and supports like quality, affordable early care and education; strengthening available safety net programs, and encouraging jobs with family-sustaining wages and benefits. We must also raise awareness about the needs and vulnerabilities of women with the recognition that their economic security isn’t just a “women’s issue.”

Women’s philanthropy has played a critical role in pushing for policy reform; investing in direct service programs to help women access job training, quality early care and education, along with financial literacy and asset building skills; and raising awareness across the country (and the world) for more than 40 years.  Its impact is growing every day. Recognizing that gender matters, we invest in women, and in doing so we impact entire families and whole communities for the better.

You can read the Poverty Issue Brief and get involved here.

Media and Politics

On Conservatives and Poverty: Talking the Talk or Walking the Walk?

Prominent conservatives sure have been talking the talk about poverty and inequality these days.

Representative Paul Ryan (R-WI) famously took a “poverty tour,” earning himself no shortage of praise as a supposed anti-poverty crusader. Senator Marco Rubio (R-FL) has waxed eloquent about what he calls “opportunity inequality.” And former Governor Jeb Bush devoted his first major policy speech as a presidential candidate to the so-called “opportunity gap.”

This sudden concern for struggling families has reached the highest levels of Congressional Republican leadership. In January, in a joint interview on 60 Minutes, Speaker John Boehner (R-OH) and Senate Majority Leader Mitch McConnell (R-KY) worried aloud about the growing gap between rich and poor. Senator McConnell even characterized the economic recovery following the Great Recession as a “top of the income recovery,” expressing dismay that “middle- and lower-income Americans are about $3,000 a year worse off than they were when [President Obama] came to office.”

Conservatives’ about-face on inequality, wage stagnation, and how hard it is to get ahead is no doubt newsworthy—particularly following Mitt Romney’s fatally tone-deaf remarks about “the 47 percent.” (Romney himself even performed a dramatic U-turn on the subject earlier this year.) So it’s hardly surprising that it’s garnered a great deal of media coverage of late.

But in marveling at how conservatives seem to have found religion on poverty, inequality, and the plight of the working and middle class, we must not lose sight of the other half of the story—their policies.

It’s not like we don’t have plenty of evidence as to what they really stand for. In addition to their voting records (check out the Shriver Center’s poverty scorecard to see how Members of Congress voted last year on minimum wage, paid leave, and other key policies that support working families), we have their budgets—the clearest statement of their priorities for the country.

As my colleagues Melissa Boteach, Anna Chu, and I wrote earlier this month, if the House and Senate majorities were serious about expanding opportunity and tackling poverty and inequality, their budgets would include job-creating investments in research and infrastructure, as well as policies such as raising the minimum wage, paid family leave, and universal pre-K—not to mention protecting and strengthening key safety net programs such as nutrition assistance and Medicaid.

Yet while Rep. Ryan may spend a lot of time talking about poverty and opportunity, year after year as Chair of the House Budget Committee, his budgets got two-thirds of their cuts from vital programs that help keep struggling families afloat—such as nutrition assistance, housing assistance, and Medicaid—all to pay for tax cuts for the wealthy and corporations.

And despite their newfound talking points on economic opportunity, the House and Senate majorities last week released Fiscal Year 2016 budgets that were just more of the same: deep cuts to nutrition assistance and Medicaid; repeal of the Affordable Care Act; cuts to job training, Pell Grants, Head Start, and more—all to once again protect tax cuts for the wealthy and corporations.

Remarkably, these policies are printed within the budget proposals alongside grand statements of concern for working and middle class families—e.g. “The economy is not working for many Americans. A lot of people are struggling to keep up or are being left behind altogether.” It makes for a glaring if inadvertent juxtaposition even within the budget documents themselves.

In another recent head-on collision between rhetoric and reality, Jeb Bush last week publicly stated his opposition to the federal minimum wage, barely a month after his speech on the “opportunity gap.” (You read that right: he didn’t just oppose raising the federal minimum wage, he said he opposes having one at all. Sen. Marco Rubio has made similar statements.)

With both parties talking about poverty and inequality these days—and a presidential campaign that is likely to focus on these issues just around the corner—it’s more important than ever to remind our political leaders that actions speak louder than words. Citizens and the media need to look past rhetoric—no matter how pretty it sounds—and focus on voting records, budgets, and policy positions.

That’s where we will find the truth.

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Safety Net

When DC’s TANF “Reform” Hurts More Than It Helps

Programs aimed at helping the poor, including the Temporary Assistance for Needy Families (TANF) program, make an easy target.  In recent years at least twelve states have passed laws mandating drug testing or screening of TANF applicants or recipients.  Although not all of this legislation has withstood judicial scrutiny, these laws reflect the distrust with which some of our nation’s government officials seem to view the parents who rely on assistance to help support their families.

In many ways, the District of Columbia has been an outlier in its approach to TANF, a federal block grant program meant to provide income assistance, job training, and other services to low-income families with children.  When other states instituted time limits on how long a family could receive benefits, DC resisted and used local funds to allow families to stay in the program as long as their need remained.

However, when budget considerations made that approach less feasible, the District instituted a series of graduated cuts that reduced benefits for families’ receiving TANF for five years or more.  At the same time, the District engaged in a massive redesign effort to improve the services available to parents.  It recognized that the services needed to be better tailored to meeting the needs of all parents receiving TANF—including those who faced numerous barriers to work, ranging from disability and domestic violence to a lack of work experience.

But the redesign also had a catch—the families who had received benefits for five years or more would lose all access to the TANF safety net on a date certain.  That date certain is October 1, 2015.  This October, 6,000 District families—including 13,000 children—will lose their primary income source.  In the months that follow, more families will lose their income too as they reach the five-year TANF time limit.

The withholding of TANF cash help and services comes despite evidence that single parents in the District—the local population most likely to rely on TANF—face a higher rate of unemployment than their childless counterparts or parents with partners.  At the same time, studies in other states have found that parents who have stayed on TANF for many years are more likely to have significant barriers to employment, including low cognitive functioning, limited levels of education, and limited English proficiency.  The economic landscape in the District and pressures of single parenthood, combined with the barriers known to limit many long-term TANF participants, suggest that parents affected by the impending TANF cut will have a difficult time finding permanent, stable work that allows them to replace even their small monthly TANF benefit.  (It’s also important to note that even a small amount of cash assistance can make a significant difference in a family’s ability to cover basic expenses, such as buying necessary personal care items or school supplies for children.)

Moreover, the changes promised in the TANF redesign are not fully available to the parents who most need them.  Many of the parents subject to the full loss of benefits in October have spent months or years without being offered meaningful services by the DC government.  Wait times for these improved services can be as long as 10 to 11 months.  At the same time, those especially vulnerable parents who may not be ready to work due to other demands in their lives, such as managing the effects of domestic violence or caring for a sick family member, are without a clear path for stopping the clock on the time limits.

Although District law outlines exemptions from the TANF time limits for families experiencing certain types of hardships, the government has yet to propose regulations or publish any publicly-available policies to explain how and to whom these exemptions should be applied.  Without timely access to employment-related services, long-time TANF recipients who could find and maintain work if given the right assistance are effectively shut out of the reforms.  Likewise, without transparent, detailed standards for exemptions from the time limits, parents who could qualify may be overlooked by agency staff and unaware of their own rights.

In this environment, it is difficult to see how cutting families off of TANF in October will have anything but negative consequences.  Parents who lose eligibility for TANF will lose not just cash and services, but possibly also their priority access to subsidized child care.  Approximately 2,000 children between the ages of 0 and 3 are expected to be affected by the upcoming TANF cut.  Their parents are even less likely to find work if child care is no longer available at low or no cost.  The loss of income could put further stresses on the District’s already burdened systems for responding to homelessness and child welfare concerns while perpetuating the District’s notable level of income inequality.  There are also longer-term effects of this kind of deep poverty, including physical and mental health problems for children who are continually exposed to high levels of stress.

The DC government still has time to mitigate some of the effects of its flawed TANF time limit policy, if it acts soon.  It can change its TANF law to allow parents who have exceeded the program’s five-year time limit to remain able to access benefits and services until it can create a more reasonable approach to addressing these families’ needs.  With a delay of a year, the government could direct funds towards reducing the wait times for all TANF parents seeking to connect to employment-related services, so that the parents who could possibly benefit from this kind of help are realistically able to do so.  Government officials could also use this extra time to streamline and formalize the process of identifying families who should be exempted from the limits due to employment barriers.

The District’s long-term vision for its TANF program must recognize that reform does not have to penalize people in our city who are least likely to be able to bear its costs.

 

Culture

A Movement to End Poverty

It’s going to take a movement to end poverty.

I didn’t know that when I started doing anti-poverty work in 2001.  I was teaching at American University, and I volunteered to deliver food to people living in poverty in Washington, D.C. In apartment after apartment, I witnessed something that shook me: Families living with empty cupboards and refrigerators. Children living in homes without any furniture. Mothers and babies sleeping on the floor.

That was a life-changing moment. I went home and founded A Wider Circle out of my one-bedroom apartment, initially collecting furniture from people I knew to give to people I didn’t know, and leading life skills and professional development workshops in shelters. Since that first year, we have furnished 22,000 homes throughout the Washington region and led 3,500 workshops.

I recognize that it takes more than a bed, or educational programming, to get out of poverty. It takes comprehensive job training. It takes connecting people with skills and education with other people who have not had the same opportunities. It takes a visible grassroots effort that includes all segments of society—government, business, nonprofits, schools, faith and civic groups, and communities—connecting and creating change together.

In short, it takes a movement.

A movement made up of people like Dr. Leonard Brock, who is leading “ROC the Future” – Rochester, New York’s community-wide initiative dedicated to ensuring that all children receive the opportunities and support they need – from birth to career. Dr. Brock has the respect and credibility to lead the charge; the son of a single mother, he grew up in public housing in Rochester’s worst neighborhood and went on to earn his master’s and doctoral degrees.

“The challenges we face are systemic,” he says. “Silos do not work to address systemic problems. We need all hands on deck.”

It takes leaders like Scott Miller, founder and CEO of Circles USA. Scott believes “the responsibility for both poverty and prosperity rests not only in the hands of individuals, but also with societies, institutions, and communities.” His model matches low-income families with community members who volunteer to serve as “allies,” supporting families as they become self-sufficient.

It takes more than a bed, or educational programming, to get out of poverty. It takes a movement.

The movement needs allies in the business community like Kelly Caplan. Community Outreach Coordinator at Washington Gas, Kelly is committed personally and professionally and understands what’s needed for major change to occur. She knows the first step toward our nation ending poverty is “believing that it is possible.”

Sixteen-year-old Sejal Katherine Makheja believes. Two years ago while volunteering at a D.C. nonprofit, she met Juan, who talked about his struggles finding a job. Sejal found his situation hard to comprehend until her father explained that many people don’t have advantages–such as access to a high-quality education–that she has. So she told her parents she wanted to help Juan get an education. Her family paid for Juan to go to community college, where he earned his certification in construction. Soon after, he landed a fulltime job.

“That small gesture changed his life,” Sejal says. “I want to replicate that again and again.” And she is, through her organization, The Elevator Project, dedicated to “lifting the financially disadvantaged one person at a time.”

Many think that ending poverty is unrealistic or downright impossible. Start where you can. Donate a bed. Or professional clothing to help someone get a job. Donate your time as a mentor. Join people living in poverty and coalitions of professionals from diverse fields from around the country at the March 28 National Conference on Ending Poverty.  You will leave the conference more connected with people devoted to ending poverty, and more equipped to take action.  As Georgetown University law professor Peter Edelman–who will keynote at the conference–writes in So Rich, So Poor: “Our side has one main weapon… Our weapon of mass construction when we use it – is us.”

In October, I met Maseray Bundu when she enrolled in our week-long job training program. The single mother of three is doing everything she can to become self-sufficient, despite the many obstacles she faces–from raising a child with asthma to finding a fulltime job that pays a living wage. Her email address reflects her eternal optimism. It reads: “EverForward.”

It’s time to make sure Maseray and so many others in poverty are no longer struggling alone. It’s time to build a movement to end poverty.

Ever Forward.

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Media and Politics

As Affordable Rent Disappears, Lawmakers Propose Slashing Funds that Could Help

Last week, the Washington Post reported on a D.C. Fiscal Policy Institute study which found that there are virtually no apartments available on the open market in the nation’s capital that are affordable for low-income households. The number of apartments that rent for less than $800 fell by 42 percent in the last decade, from more than 57,700 in 2002 to 33,400 in 2013; and the number of houses with rents between $800 and $1,000 also showed a significant drop during that timeframe.

But even as we are learning more about the magnitude of the rental crisis in the streets surrounding the U.S. Capitol and across the nation, many Republicans in Congress want to prevent Fannie Mae and Freddie Mac from funding the Housing Trust Fund and the Capital Magnet Fund, two programs that provide resources to help build and preserve affordable housing nationwide.

The Housing and Economic Recovery Act of 2008 directed Fannie Mae and Freddie Mac to place a sliver of their earnings each year into the two funds. But before those contributions ever began, the Federal Housing Finance Agency (FHFA) had to bail out the mortgage giants due to the financial crisis. As part of the rescue activity, FHFA suspended contributions to the funds.

Now that Fannie and Freddie have regained their financial footing, FHFA Director Mel Watt has lifted the suspension and given the go-ahead for the mortgage giants to resume payments into the funds. But for conservatives in Congress, even this small measure of assistance to poor families is too much. When Watt announced his decision near Christmas last year, the Republican-controlled House Financial Services Committee deemed it “a lump of coal to every taxpayer.”

Members of Congress should look out their office windows more often, or better yet, visit surrounding neighborhoods.

In January, Rep. Ed Royce (R-CA) introduced legislation that would prevent Fannie Mae and Freddie Mac from directing money to the two funds until they are out of conservatorship. The bill is almost identical to one he authored a year ago, which garnered 22 cosponsors, including House Financial Services Committee Chairman Jeb Hensarling (R-TX). As lawmakers deliberate the Republican budget proposal this week, it’s likely we will see efforts to end the Housing Trust Fund and the Capital Magnet Fund resurface.

If members of Congress are ignoring what’s happening right in their own backyard, then they probably are ignoring what’s happening across the country, too. The cliff-dive in rental affordability is not limited to our nation’s capital. Data shows that more than half of all renters in the nation spend more than 30 percent of their gross income on housing (and most extremely poor households pay more than half of their meager incomes), leaving precious little for groceries, medication, transportation, and other necessities of life. For example, in California – Rep. Royce’s home state – there is a serious housing affordability crisis, with average monthly rents about 50% higher than the national average.

Any moves to cut the funding for the Housing Trust Fund and the Capital Magnet Fund ignore the dire need for them across the country right now. Unfortunately, it’s a trend with Congress. Our lawmakers have repeatedly cut rental assistance programs, even though the number of households in worst-case scenarios – living in abysmal housing or having to use more than half of their income on rent – has only increased over time.

Members of Congress should look out their office windows more often, or better yet, visit surrounding neighborhoods – then maybe they would get a clue about our affordable housing crisis.  Passing legislation to slash these two funds would not only make the housing situation worse, it would be an insult to hard-working families who are already struggling to make ends meet in every state and district.

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