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Wednesday, Sep 13 2023

Full Issue

Child Poverty Soared, Incomes Declined When US Covid Supports Ended

The dreadful economic math of the end of the pandemic is revealed in new data from the U.S. Census Bureau: As covid benefits wrapped up in 2022, child poverty more than doubled and median household income fell. But income inequality declined for the first time since 2007.

Child poverty in the United States more than doubled and median household income declined last year when coronavirus pandemic-era government benefits expired and inflation kept rising, according to figures released Tuesday by the U.S. Census Bureau. At the same time, the official poverty rate for Black Americans dropped to its lowest level on record, and income inequality declined for the first time since 2007, when looking at pre-tax income, due to income declines in the middle and top income brackets. (Schneider, 9/12)

The expected spike in poverty 鈥斅爌articularly child poverty 鈥斅燽etween 2021 and 2022 shows the impact of letting major pandemic-era safety net program expansions expire, a policy experiment with no precedent in the U.S. The pandemic programs were enacted as temporary measures. But their expiration still stings for the Americans who experienced an economic boost only to lose it 鈥 and there's more to come. (Owens, 9/13)

On pandemic aid fraud and unemployment funds 鈥

As much as $135 billion in unemployment insurance benefits may have been lost to fraud during Covid-19, according to a Government Accountability Office report released Tuesday, more than double an earlier estimate. The federal watchdog estimated that fraudulent payments may have amounted to between 10 and 15 percent of the $900 billion spent on UI between April 2020 and May 2023, when the federal public health emergency ended. (Niedzwiadek, 9/12)

The Labor Department, which oversees federal unemployment insurance programs, expressed concerns about the report鈥檚 methodology in a letter to G.A.O. officials and argued that the level of fraud was likely overstated. Officials pointed to efforts that have since been taken to deter fraud, and said the 鈥渆normous task鈥 of doling out the funds was made 鈥渙nly more daunting by the decades-long chronic underfunding鈥 of the unemployment benefits system. 鈥淎s a result, state agencies were unprepared for the extraordinary spike in the number of claims to be processed each week,鈥 Brent Parton, a principal deputy assistant secretary at the department, wrote in the letter. (Ngo, 9/12)

In related news about homelessness 鈥

Baby boomers, who transformed society in so many ways, are now having a dramatic effect on homelessness. Higher numbers of elderly living on the street or in shelters add complications and expenses for hospitals and other crisis services. The humanitarian problem is becoming a public-policy crisis, paid for by taxpayers. (Najmabadi, 9/12)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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