Federal Aid Programs Research Articles

Estimating the loss-reduction effects of disaster preparedness and mitigation: An empirical study of US coastal states.

As extreme weather events like floods and storms continue to increase, it is crucial to examine the degree to which various disaster preparedness and mitigation investments can lower these risks. In this research, we empirically examine the effects of multiple federal disaster aid programs on reducing subsequent flood- and storm-related damages across US coastal states. Our analysis distinguishes aid programs and their funded projects targeting different emergency management functions, including preparedness, nonstructural and structural mitigation, emergency response and protective measures, and rehabilitation of public infrastructure. We construct panel data of more than 1800 US counties over the years 2000-2019 and estimate a fixed-effects model with time-varying county-level socioeconomic and demographic characteristics. We find that disaster aid generally helps mitigate property damages, although this loss-reduction effect varies by program. Among all aid programs, the Emergency Management Performance Grant results in the largest reduction of future flood damages. The Public Assistance grants supporting emergency work are also found to exert a strong effect on risk reduction. We also find that the impacts of disaster aid are higher in coastal counties. Our study is one of the first few examining the resilience implication of disaster aid in coastal counties, and our results underscore the importance of investing in capacity building, contingency planning, and consistency in maintenance.

COVID-19 Federal Aid and Household Food Expenditures

AbstractDuring the COVID-19 pandemic, U.S. households received economic impact payments through several federal aid programs. Simultaneously, the U.S. food sector experienced dramatic shifts in the source of demand and consumer spending behavior. Motivated by this, we evaluate the associations between federal financial assistance and both household food-at-home and food-away-from-home expenditures. The first two economic impact payments were associated with increased spending on food-at-home, while only the first was associated with increased spending on food away from home. All three payments were associated with an increased probability of spending on food away from home.

COVID-19 and Pennsylvania farmers: Financial impacts, relief programs, and resiliency strategies during the 2020 growing season

This article reports the findings of a multimethod study of the financial impact of the COVID-19 pandemic on Pennsylvania (PA) farmers during the 2020 growing season. Previous research on resili­ency and the food system has encouraged explor­ing ways to describe the agency and adaptability of farmers as they respond to changing conditions. Further, the research has documented the ways that governments intervene to maintain the overall structure of the food system. This study utilized a three-part framework that focused on (a) under­standing the impact of the pandemic on PA farm­ers, (b) describing farmer adaptation strategies and direct-to-consumer marketing practices, and (c) documenting federal relief program participation. The project included an anonymous survey of more than 300 farmers and semi-structured interviews with a subset of 16 farmers. Based on the findings from the survey, under half (42%) of farmers reported a loss of revenue, while over half reported either no change or an increase in revenue in 2020. We also found that vegetable farmers fared slightly better than livestock/dairy farmers; those with a higher pre-COVID revenue did better than those with a lower pre-COVID revenue; and farms that were able to increase direct-to-consumer sales maintained or increased their total revenues. About half of the farmers surveyed participated in federal aid programs, yet a portion of small farms indicated they did not know whether they qualified for this funding. We discuss the unprecedented scale of federal aid to farmers in 2020 and the remaining access gaps for smaller farmers. Addi­tionally, we discuss the potentially protective role of direct-to-consumer sales for enhancing the resilience of regional food systems.

Governors and electoral hazard in the allocation of federal disaster aid

AbstractU.S. public disaster aid provide elected officials opportunities to engage in “electoral hazard,” where an incumbent can influence the probability of re‐election by allocating aid to influence voters' expectations of their future welfare. This is the first test for electoral hazard in the allocation of federal aid to counties exposed to the risk of economic loss from disasters by incumbent state governors running for re‐election. Using a unique county‐level data set, we estimate the determinants of the equilibrium allocation strategy of an incumbent in the presence of electoral hazard. Controlling for loss and the demographic, economic and political characteristics of at‐risk counties, we find the average incumbent governor seeking re‐election actively engages in the manipulation of voter expectations by allocating greater shares and magnitudes of the largest federal disaster aid program to those at‐risk counties that awarded the incumbent governor a plurality of votes in the preceding election.

Federal Funding and State Wildlife Conservation

Federal aid programs subsidize local governments in sectors ranging from health care to transportation, but there is little empirical study of their effects on local provision. We examine the effects of the 1937 Pittman-Robertson Wildlife Restoration Act, which directed federal excise taxes on guns and hunting equipment to wildlife agencies on the condition that receiving states stop diverting license funds to purposes unrelated to wildlife conservation. Using panel data from 1925 to 1937, we find that states with larger administrative sectors were more apt to divert wildlife revenues, and these diversions correlate with fewer licenses sold, suggesting adverse effects of diversions on wildlife conservation. Data from 1938–2018 suggest the Pittman-Robertson Act increased license sales and revenue, leading to positive effects on long-run conservation.

Food insecurity and cardiovascular disease: Current trends and future directions

Food insecurity (FI) – a state of limited access to nutritionally adequate food – is notably more prominent among patients with cardiovascular disease (CVD) than the general population. Current research suggests that FI increases the risk of cardiovascular morbidity and mortality through various behavioral and biological pathways. Importantly, FI is more prevalent among low-income households and disproportionately affects households with children, particularly those led by single mothers. These disparities necessitate solutions specifically geared towards helping these high-risk subgroups, who also experience increased risk of CVD associated with FI. Further, individuals with CVD may experience increased risk of FI due to the financial burden imposed by CVD care. While participation in federal aid programs like the Supplemental Nutrition Assistance Program and the Special Supplemental Nutrition Program for Women, Infants, and Children has been associated with cardiovascular health benefits, residual FI and lower dietary quality among many families suggest a need for better outreach and expanded public assistance programs. Healthcare systems and community organizations can play a vital role in screening individuals for FI and connecting them with food and educational resources. While further research is needed to evaluate sociodemographic differences in the FI-CVD relationship, interventions at the policy, health system, and community levels can help address both the burden of FI and its impacts on cardiovascular health.

Commentary: COVID-19 and the Vulnerability of Single Mothers in Institutions of Higher Education.

Commentary: COVID-19 and the Vulnerability of Single Mothers in Institutions of Higher Education.

Environmental Health Threats to Latino Migrant Farmworkers.

Approximately 75% of farmworkers in the United States are Latino migrants, and about 50% of hired farmworkers do not have authorization to work in the United States. Farmworkers face numerous chemical, physical, and biological threats to their health. The adverse effects of these hazards may be amplified among Latino migrant farmworkers, who are concurrently exposed to various psychosocial stressors. Factors such as documentation status, potential lack of authorization to work in the United States, and language and cultural barriers may also prevent Latino migrants from accessing federal aid, legal assistance, and health programs. These environmental, occupational, and social hazards may further exacerbate existing health disparities among US Latinos. This population is also likely to be disproportionately impacted by emerging threats, including climate change and severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). Latino migrant farmworkers are essential to agriculture in the United States, and actions are needed to protect this vulnerable population.

Did the small business administration’s COVID-19 assistance go to the hard hit firms and bring the desired relief?

The paper uses newly released Small Business Pulse Survey data on small business’ response to questions about overall COVID-19 impact, federal aid request, federal aid receipt, and subsequent changes in revenue and employee hours to evaluate the efficacy of three federal aid programs: Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL), and Small Business Administration (SBA) loan forgiveness programs. The paper finds no evidence that the severity of COVID-19 impact is related to the application and approval rate of any of the SBA assistance programs, implying that the relief funds did not reach the firms that need the liquidity injection the most. But the firms that did receive the relief funds were less likely to report revenue decrease and employee hours decline during the subsequent weeks. This result provides preliminary support to the social insurance value of the relief programs in boosting small businesses’ economic activities during the COVID-19 crisis.

Educational outcomes for homeless young adults with and without a history in foster care

Homeless young adults (HYA) with and without a history in foster care in the United States experience lower high school graduation rates than young adults in the general population. Few studies examine the risk and resilience factors that promote positive educational outcomes for these subpopulations. This study explores the factors that are associated with positive educational outcomes for HYA with and without a foster care history. This study uses data from a 3-city cross-sectional study of HYA, which included quantitative interviews of HYA between the ages of 18 and 24 (N = 601) in Austin, TX (n = 200), Los Angeles, CA (n = 200), and Denver, CO (n = 201). Positive educational outcomes consisted of HYAs being currently enrolled in or previously attaining a degree from a secondary, postsecondary or technical education program. This study uses two logistic regression models to identify the risk and resilience factors associated with positive educational outcomes for HYA with and without a history in foster care. For HYA with a history in foster care, city was a significant predictor of positive educational outcomes as well as being an older age, formal employment, not having an arrest record, having a lower score of emotional neglect, and having a higher score of physical abuse. For HYA without a history in foster care, significant predictors included not having an arrest record and having a higher score of emotional abuse. Findings highlight the need for an expansion of federal and state postsecondary education financial aid programs for HYA with and without a history in foster care.

Education Tax Credits: A Different Trajectory for Federal Funding of Higher Education and Remediation for Effectual Policymaking

Education tax credits provide federal financial aid to a wide expanse of American taxpayers; however, little research or analysis has been done on these costly programs. There has been little evidence of its link to college enrollment growth. This descriptive paper outlines the establishment of education tax credits, their original intent, and the lack of evidence of effectual federal policy over the past two decades. Thus, the purpose of this article is to assess how the federal government has reached an $18.9 billion annual expenditure for education tax credits with little to show in returns on investment. Further, this paper will provide recommendations needed to increase education tax policy efficacy. Since tax rewards reach more recipients than other forms of federal aid programs, they have the potential to increase college enrollment and educational attainment while providing liquidity-constrained individuals with greater incentive to enroll, persist, and graduate. If evaluated and remediated, education tax credits could positively affect the diversity of college populations, providing additional opportunities for desiring, potential students.

A Study on Effects of Financial Aid on Student Persistence in Dual Enrollment and Advanced Placement Participation

Despite concerted efforts to increase participation in advanced placement (AP) and dual credit (DC) programs, their efficacy remains unexplored. Drawing upon St. John’s model as the conceptual framework, this study employed a discrete-time event history analysis to examine the interplay between forms of financial aid and persistence toward degree completion for students participating in DC and AP programs and enrolling in a large, multicampus, Midwestern, U.S. University. First-time, first-year baccalaureate degree-seeking students who began studies in Fall 2012 were tracked for 4 years. The findings suggest that many factors are significantly related to college success, including student demographics such as race (especially Latino identity), first-generation status, housing status, socioeconomic status, and dependency status; high school performance, AP/DC participation, and SAT or ACT scores; and financial aid, such as Pell and federal grant aid and institutional grant programs. Results suggest that receiving Pell and federal grant aid and institutional grant-in-aid consistently and significantly attenuated the risks of student departure. In relation to prematriculation college-level credits, AP participants were more likely to receive institutional grant programs, whereas DC participants were more likely to have student loans. These findings have implications regarding the efficacy of DC/AP programs in regard to their interplay with financial aid systems in affecting persistence outcomes.

Does federal disaster assistance crowd out flood insurance?

We empirically analyze whether federal disaster aid crowds out household purchase of disaster insurance. We combine data on annual household flood insurance purchases for the United States over the period 2000–2011 with data from the two main U.S. post-disaster federal aid programs (FEMA's Individual Assistance grants and SBA's low interest disaster loans). Estimating both fixed-effects and instrumental variable models to account for the endogeneity of disaster assistance grants, we find that receiving individual assistance grants decreases the average quantity of insurance purchased the following year by between $4000 and $5000. The reduction we find is roughly 3% of the mean insurance coverage in the sample but larger than the average flood-related IA grant in our sample, which is $2984. IA is currently limited and larger grants could have different impacts. The crowding out is on the intensive margin; we find no impact on take-up rates, likely because there is a requirement that recipients of disaster aid purchase an insurance policy. We do not know how take-up rates might change without such a requirement. Low interest post-disaster government loans have no systematic effect on insurance purchases.

The Distributional and Cost Implications of Negative Expected Family Contributions

Eligibility for many federal, state, and institutional financial aid programs is determined by the expected family contribution (EFC) from the Free Application for Federal Student Aid (FAFSA), which functions as a tool to ration scarce aid dollars. The lowest possible EFC under current rules is zero, but this obscures a wider distribution of family resources that would be partially uncovered if the EFC formula were not truncated at zero and negative values were allowed. In this paper, I estimate negative EFCs using student-level data from nine colleges and universities between the 2007-08 and 2011-12 academic year. I find a large amount of dispersion in the distribution of negative EFCs for dependent students and that between 20% and 90% of students (varying by whether the student files the full FAFSA or qualifies for a Simplified FAFSA or an automatic zero EFC) would qualify for a larger Pell Grant award if negative EFCs were allowed. Additional costs of funding a negative EFC could range from $1.6 billion to $7.2 billion per year, depending on assumptions regarding generosity.

Incentivizing Municipalities to Adapt to Climate Change: Takings Liability and FEMA Reform as Possible Solutions

This Article addresses a central question of climate adaptation in the United States: how can municipalities, which are best positioned to take a lead in climate change adaptation efforts, be incentivized to do so? The Article analyzes and ultimately rejects as doctrinally unmoored and counterproductive one idea that has been suggested by commentators and arguably endorsed in a few noteworthy recent cases — that is, that municipalities and other governments be held liable under the Takings Clause for their failing to take adaptive measures that protect private property. Instead, the Article argues that municipalities should be given an incentive to adapt by means of modifications in federal aid programs that in effect would require the municipalities to obtain private insurance against climate-change-related damage to public property and infrastructure. This proposal, if adopted, would be a salient first step toward the transformation of federal policy from one that actively discourages private adaptation to changing patterns of extreme weather and sea level rise to one that actively encourages such adaptation.

Lowering the Cost Barrier to Higher Education for Undocumented Students: A Promising University-level Intervention

ABSTRACTUndocumented students, many of Hispanic origin, face among the strictest cost barriers to higher education in the United States. Lack of legal status excludes them from most state and all federal financial aid programs. Furthermore, most states require them to pay out-of-state tuition rates at publicly supported institutions. In a new direction, boards of trustees at universities in several states have bypassed the legislative process to lower the cost barrier. This policy article evaluates one such university-level innovation.

Retribution or Rehabilitation? Conflicting Goals of US Policies Pertaining to Drug Felonies and Their Impact on Women

Both retributive and rehabilitative views are present in US public policy regarding individuals convicted of drug-related felonies, and the impact of these policies on women is examined in this article. While federal aid program policies are frequently punitive and restrictive, criminal justice policies often focus on treatment and increased access to housing. Implications for women and families are discussed and recommendations made.

Integrity versus access? The effect of federal financial aid availability on postsecondary enrollment

It is generally believed that access to financial aid will increase the likelihood that students will attend and graduate from college. There is a surprising lack of research, however, on the consequences when postsecondary institutions lose eligibility to disburse financial aid. This paper provides among the first causal estimates of institution-level financial aid funding loss on enrollment and composition of student bodies. I implement a dynamic regression discontinuity design using a multi-year rule that restricts institutions' eligibility to offer federal aid such as Pell Grants and subsidized loans when alumni's loan repayment rates are below allowed thresholds. Results suggest that financial aid loss discourages enrollment at for-profit institutions and institutions that offer programs of two years or less. The decline in enrollment appears to be driven by fewer new enrollees, particularly at for-profit colleges. I find less conclusive evidence that ineligibility to disburse federal financial aid substantially alters student body composition. This research is particularly relevant considering recently proposed federal rulemaking that will further limit the number of institutions eligible to disburse financial aid based on additional student loan debt repayment requirements. Restrictions such as these are intended to protect students and the integrity of federal aid programs, but may also have implications for access to higher education.

The Other Big Test: Why Congress Should Allow College Students to Borrow More Through Federal Aid Programs

Student loan borrowing has increased dramatically in recent years as the cost of pursuing higher education has risen. Because family incomes and the amount that students can borrow through federal loan programs have not kept pace, more students take out private education loans, which carry worse terms and fewer repayment options, from banks and other lenders. Graduates’ debts affect their life and career decisions in socially undesirable ways, and existing loan repayment assistance and forgiveness programs intended to ameliorate the burden do not address private loans. This article proposes significant increases in the amount students can borrow through federal loan programs, reducing or eliminating the need for private loans. Properly designed, the proposal also addresses the negative effects of debt on graduates’ life and career choices.

Do Loans Really Expand Opportunities for Community College Students?

In order to understand whether loans actually expand opportunities among community college students, it is important to understand who is borrowing and who is not. A binary logistic regression was used to determine which financially needy students are likely to borrow from federal loan programs. The current study found that the following types of students are less likely to borrow: first generation college students; females; students considered financially dependent upon their parents; and students who are Asian/Pacific Islander, Hispanic, or American Indian. Policy makers need to be mindful of this as they set funding levels for state and federal financial aid programs and not assume that students will use federal student loan programs to offset reductions in other types of financial aid.