As a part of a new pilot program, D.C. will be giving up to $10,000 in cash to 600 families transitioning out of homelessness, to support housing, food, and income assistance as they advance their career or find employment.

The Career Mobility Action Plan pilot, initially a $11.7 million project funded through the American Rescue Plan Act, is designed to help families who have experienced homelessness and may be approaching the “benefits cliff” — meaning they receive public benefits from the government, but risk losing those benefits if they earn a higher income. Due to a web of complex and overlapping public assistance programs, earning more money can create an even worse financial situation for a family.  They can face losing a childcare subsidy, food assistance program, or housing benefit when reaching a higher income. (For example, in order to receive TANF benefits (Temporary Assistance for Needy Families), a family of four can make no more than $870 a month to quality for $813 in benefits.)

“This investment is huge, because it does remove the barriers that are baked into our systems and structures, that people experience when they are trying to earn their way out of poverty” Laura Zeilinger, director of D.C.’s Department of Human Service said on Monday.

The Career MAP pilot will provide direct cash to 300 families this year, and D.C. Mayor Muriel Bowser announced on Monday that an additional $13.1 million will allow the program to fund 300 more families in 2023.

“We can’t change the federal rules around eligibility for benefits, but we are creating a new program that helps fill that gap,” Bowser said, announcing the pilot program at the ribbon-cutting of the newly renovated Taylor Street Service Center. The center, which received a $5.2 million facelift, will reopen on Oct. 3 and serve as a place where families can access information about government benefits and career advancement. 

Each family selected for the Career MAP program will be placed with a program navigator and receive income and rent support as they seek or advance current employment. If getting a higher paying job or a raise means that certain benefits will be cut back — like healthcare, food assistance, or subsidized housing — the program will fill in the gap. For every month that a family pays their portion of rent, the program will also put $200 into a savings account. Zeilinger said the program was designed through a series of interviews, conversations, and focus groups with residents currently receiving assistance from DHS about what would be most beneficial and meet their needs. In total, about 1,500 families applied to participate.

The pilot marks the latest use of the city’s federal pandemic assistance money. Last month, ahead of the start of the school year, D.C., gave 15,000 low-income families one-time payments of $1,000 to use however they saw fit, and in January, Bowser launched a $1.5 million pilot program that provides direct cash payments to 132 low-income parents or pregnant people in wards 5,7, and 8. Each person will receive up to $900 a month for a year, with no condition for how they use that money.