Education (US)
What is government aid?
What is government aid? Find out the definition, the types, and how they work, so you can qualify for assistance if you need it.
Government aid: social welfare and insurance programs
Each government, no matter if it is a federal or state entity, provides assistance programs on behalf of beneficiaries. Do you know what government aid is and how to get it?
Usually, these are federal programs for people in poverty or in any other kind of need.
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Therefore, public assistance includes social welfare and social insurance matters.
Furthermore, those programs can be provided in cash assistance or other types of benefit that may include both the person-in-need and their family.
How does it work?
In general, governmental assistance programs are provided for people who can’t afford private services, such as medical insurance or traditional private mortgages.
A federal entity manages the program with state and city departments support.
Usually, the program’s benefits come in the form of goods, payments, or services.
Also, it is important to note that each program requires a list of documents and requirements that will prove if a person would be eligible to receive the benefits.
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What are the types of government aid?
There are many social welfare and insurance programs provided by governments around the world. The U.S. government released more programs after the pandemic.
No further ado, keep reading to learn the main programs available in the country.
1. Lost Wages Assistance Program (LWA)
The LWA is a program created in response to the end of another program, the Federal Pandemic Unemployment Compensation (FPUC).
It is destined for eligible unemployed people through the fund of Disaster Relief (DRF).
Also, this program is a partnership between federal and state governments, in which the federal entity provides $300 while the state provides $100 per week.
2. Unemployment Insurance (UI)
Another benefit provided by federal and state departments is Unemployment Insurance.
This benefit is given to unemployed people who lost their job with no fault.
Also, it is calculated as a percentage of a person’s earnings from a year, and it lasts up to 26 weeks.
3. Temporary Assistance for Needy Families (TANF)
TANF is run by each state and funded by the federal government. Also, it is called welfare.
The main objective is to help people in temporally need with housing, childcare, food, job training, and more.
In addition, eligibility criteria include that beneficiaries engage in some kind of work activity.
4. Social Security Disability Insurance (SSDI)
Social Security Disability Insurance is paid for those with a medical condition that cannot work due to it.
Furthermore, the program includes back-to-work incentives and other benefits that help and increase income.
5. Supplemental Security Income (SSI)
On the other hand, people with disability or the elderly who have little or no income may receive a monthly payment through the Supplemental Security Income.
Also, this government aid helps them to qualify for food stamps and Medicaid.
6. Subsidized Rental Housing
Through the Subsidized Rental Housing program, people with limited income may get financial help to rent a house or an apartment.
In summary, the government pays an amount of the total rent, and the family pays the difference.
7. Homeownership Programs
There are many programs for people who want to buy their home but don’t have enough money to do it.
However, each program features several requirements a person needs to meet.
Usually, those programs are more accessible in terms of conditions and rates. But they require a list of minimums and maximums in order to get approval.
Let’s check the most famous homeownership programs.
- FHA loans: in general, an FHA loan is used for first-time home buyers who have a fair credit score and less than 4% of the total purchase price to pay as a down payment.
- VA loans: loans designed for veterans and eligible family members.
- USDA loans: loans designed for eligible rural homebuyers with a zero down payment.
8. Student Financial Aid
Student Financial Aid is a program that gathers all financial support for students who are willing to continue their education but don’t have enough income to do it.
Moreover, it includes student loans, grants, scholarships, and work-study programs.
Student Financial Aid programs are great opportunities to help students attend better colleges and build credit in case of loans paid with responsibility.
9. Food Programs
When it comes to emergency needs, federal and state governments offer free or low-cost food programs to people in need.
Also, the programs follow nutrition standards and focus on food security and medical assistance for children and the elderly.
Examples of those programs are Immediate Aid, Special Supplemental Nutrition Program for Women, Infants, and Children, School-Age Children, Supplemental Nutrition Assistance Program, and Seniors.
10. Healthcare
The same happens for healthcare.
The government provides medical insurance and coverage for vulnerable people, including veterans, unemployed people, the elderly, and children in need.
Some major programs are listed below:
- Medicare: health insurance plan for the elderly.
- Medicaid: health coverage for low-income individuals and families.
- Children’s Health Insurance Program (CHIP): health coverage for people under 19 years old. It is designed for families that have a higher income to apply for Medicaid but not high enough to pay for private health coverage.
Recommendation: What is a healthcare credit card?
As you can see, the government features several assistance programs to help majorly people in need or temporally vulnerable to access healthcare, education, housing, and basic needs like food.
On the other hand, since most of those programs are designed for people that earn low or no income, it is important to get to know alternatives in case you or your family do not meet the requirements.
Therefore, read our next article to learn more about a healthcare credit card if you need alternatives to get covered.
What is a medical credit card?
What is a medical credit card? Read this article to learn more about it, and check the list of the best ones available on the market for you to choose from.
About the author / Aline Augusto
Reviewed by / Aline Barbosa
Senior Editor
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