Direct monetary transfers to individuals, households, or microenterprises—a form of market-based assistance—have generated significant global interest over the last twenty years. Allowing people to decide for themselves how to use development assistance respects their dignity and enables them to address their unique needs and local priorities. Despite compelling evidence that direct monetary transfers are effective to achieve a variety of development outcomes, this approach is most commonly applied within USAID as a tool for emergency humanitarian response. This Position Paper clearly states that USAID should include direct monetary transfers as a core element of its development toolkit. Direct monetary transfers can be effective on their own, and can in some cases be made more effective through the addition of targeted “plus” elements which address other development challenges.