Safety Net Aid Enrollment Soars, Complicating Economic Recovery

Mayor Eric Adams frequently proclaims how the city has recovered all the jobs lost in the recession. Left unsaid is that despite those economic gains, more New Yorkers need to rely on government safety net programs than before the pandemic.

The number of people on SNAP food benefits is about 15% higher than early 2020 and the number on Medicaid is about 25%. But the greatest leap has been among New Yorkers needing cash assistance, a figure that has exploded by more than 50% to about half a million people.

Roughly one in five have been receiving assistance for more than five years, after running out the clock on federal government benefits — putting increasing pressure on the city budget, which is growing by $800 million this year to accommodate cash assistance claims.

The costs of the safety net programs are likely to continue to increase especially if the Legislature and governor agree in the coming week on a proposed increase in the monthly amounts, which is part of the Assembly’s budget proposal.

“Our clients tell us that they cannot afford to do their laundry, are using dish soap to wash their hair, and make the hard choice to forego personal care items like deodorant,” said Susan Welber, an attorney with the Legal Aid Society, who is also a spokesperson for a coalition of social service groups lobbying for an adjustment.

While the uneven recovery of the city’s economy plays a role in the increases, the data also shows that people above the poverty line now need help in far greater numbers than before the pandemic.

“In a recovery where the big news that the raises at the bottom have finally increased, how do you square that with more and more people continuing to enroll in public assistance?” asked Debipriya Chatterjee, an economist at the nonprofit Community Service Society.

“In New York City it is the increased cost of living, especially housing,” she answered.

Just under 1.7 million people in the city are now enrolled in Medicaid. The number has declined in recent months as recipients have been forced to recertify eligibility after the end of pandemic era protections for those on the health care program.

Slightly more than 1.75 million residents are collecting SNAP food assistance.

And at the end of the year just under 500,000 New Yorkers were receiving cash assistance under two separate programs — with most of the beneficiaries now receiving funds from the state and city of New York, not the federal government.

The figures indicate the increasingly difficult straits for New Yorkers who have been left behind by the economic recovery.

Of the half million city residents receiving cash benefits, 139,000 are enrolled in the state’s Family Assistance Program. Family Assistance provides up to 60 months of aid to families with at least one minor child. Amounts range from $460 for two people to $1,455 for a family of six and the time limit is set by the federal government, which bears most of the cost.

The remaining 358,000 are on what is called Safety Net Assistance, which is funded by the state and city of New York. More than 116,000 people currently receiving Safety Net Assistance moved to the program after maxing out their five years on Family Assistance. The rest are single adults and others who are not eligible for federal cash benefits.

Safety Net Assistance enrollment has grown by 64% since before the pandemic, city figures show. THE CITY recently reported that asylum applicants and refugees constitute an increasing but still small share of total enrollment.

While most of the people receiving cash assistance have no other income, changes to the program under Gov. Kathy Hochul allow an increasing number of low-income people to qualify for a reduced amount.

In response to questions from THE CITY, the city’s Human Resources Administration in a statement pointed to weaknesses in the city’s recovery, especially high rates of unemployment for Black and Latino workers, the high cost of living in the city and the end of pandemic relief aid, which sent many to seek out other programs.

Costs are what shows up most in the Community Service Society’s hardship survey, says Chatterjee, who spotlight the squeeze on working New Yorkers who are accessing the safety net in larger numbers.

For example, the share of people in poverty receiving aid increased from 29% in 2010 to 34% in 2022, according to census data.

But the increase was twice as large for people earning 400% of the poverty line, jumping from 20% in 2010 to 27% in 2022, she notes.

The pressure on the city’s budget is increasing because the city pays only 15% of the cost of family assistance with the rest coming from the state and federal government. But the state requires the city to cover 71% of the cost of safety net assistance.

As a result, the city had to add $816 million to the budget for the current year ending June 30 to cover the cost, with the city itself putting in $465 million and the state and federal government covering the rest.

These additions are likely to continue in the future, says the city Independent Budget Office, because the city’s budget office only includes a baseline amount in projections rather than trying to estimate the demand for programs like cash assistance.

Meanwhile, a coalition of social service groups is lobbying the legislature to increase the monthly cash benefits that have been eroded by inflation. Parts of the formula used to set it haven’t been increased since 1981 and the last adjustment to other elements occurred 12 years ago, Weber says.

A provision of the Assembly’s budget proposal would raise the amount by $103 for a single person to $289 and by $714 for a family of six to $1,127.

The administration has frequently pointed to its efforts to improve job training to get more people in the workforce. Just last week the mayor announced a JOBS NYC initiative, which will focus on low-income communities. He also revised job requirements to make more city jobs available to low-income residents.

While the efforts are welcome, the city’s biggest investments to date have focused on high schools and the City University of New York system, says Greg Morris, chief executive of the New York City Employment and Training Coalition.

“We appreciate the investment in school youth but I am worried about the reskilling or upskilling of people who need to get jobs,” he said. “We don’t see those investments right now.”