New York City First Conditional Cash Transfer: What worked, what didn't

This report summarizes the findings of a long-term evaluation of Opportunity NYC–Family Rewards, an experimental, privately funded, conditional cash transfer (CCT) program to help families break the cycle of poverty. Family Rewards was the first comprehensive CCT program in a developed country. Launched in 2007 by New York City’s Center for Economic Opportunity, it offered cash assistance to low-income families to reduce immediate hardship, but conditioned that assistance on families’ efforts to build up their “human capital” to reduce the risk of longer-term and second-generation poverty. The program thus tied a broad array of cash rewards (financial incentives) to prespecified activities and outcomes in the areas of children’s education, families’ preventive health care, and parents’ employment. It operated as a pilot program for three years, concluding, as planned, in August 2010. Six community-based organizations, in partnership with a lead nonprofit agency, ran Family Rewards in six of New York City’s highest-poverty communities.

MDRC evaluated the program through a randomized controlled trial involving approximately 4,800 families with 11,000 children; half of the families could receive the cash rewards if they met the required conditions, and half were assigned to a control group that did not participate in the program and could not receive the rewards. This report distills previously published findings and some longer-term updates on the program’s effects on a wide range of outcomes, covering two to six years after families entered the study (depending on the data source).