Advancing Economic Mobility: Connective and the Role of Public Benefits 

Understanding Houston, our regional indicators project launched in partnership with Rice University’s Kinder Institute for Urban Research, took a deeper look into the scope and impacts of poverty in our region and the positive impacts that public benefits can have in their article, Building Pathways to Economic Mobility: The Role of Public Benefits. 

Learn more about how Understanding Houston empowers our donors to make strategic philanthropic decisions in these important areas.

Continue reading for key takeaways from the article. You will also learn more about Connective, a Houston-based nonprofit and grant recipient of our 2024 High-Impact Grantmaking initiative, and how it works with partners across Harris County to provide a solution to the underutilization of public benefits by creating a local Public Benefits Hub. 

Negative Impacts of Poverty 

Poverty can have generational impacts on children. Here’s how: 

• Living in poverty can lead to physical, mental, and financial strain.  
• Children who grow up in poverty are more likely to experience poverty as adults. 
• Children who grow up in poverty are two to three times more likely to develop mental health conditions. 

Public Benefits Impact on Poverty 

Public benefits are government programs that offer financial assistance to help people meet their basic needs like food, housing, and healthcare. How do public benefits impact poverty? 

When the United States expanded several public benefits programs in 2020 and 2021 to mitigate financial hardships during the pandemic, the national poverty rate reached its lowest level on record. A year after this pandemic-related assistance terminated, the number of Americans living in poverty increased by more than 15 million between 2021 and 2022. 

How do public benefits stabilize individuals and families? These programs:  

• Provide basic needs. 
• Decrease the stress related to unpredictable finances.  
• Reduce the level of poverty someone is experiencing—moving individuals or families from survival mode to pursuing economic mobility. 
• Alleviate immediate financial pressure and help people avoid cycles of housing instability or food insecurity. 

Types of Public Benefits 

Public Benefits Go Unused 

In Harris County, almost $1 billion in government benefit assistance goes unclaimed each year with more than half a million Harris County residents missing out on benefits they are eligible for. What are the main reasons people are unenrolled or under-enrolled in benefits even if they are eligible? 

Lack of Awareness of Eligibility 
Many individuals do not know how or where to apply for public benefits.  

Social Stigma 
People often choose not to seek help or apply for benefits because of the social stigma attached to receiving public benefits. 

Complex and Lengthy Application Process 
The application process and requirements are also challenging to navigate and although most can be applied for online, this can be a barrier for some who do not have easy access to technology. 

Harris County’s Solution: Connective’s Public Benefits Hub 

Connective transforms social services into a more connected, empathetic, and accessible system. Its Public Benefits Hub (PBH) provides a one-stop-shop for low-income families in Harris County to access essential public benefits like food assistance, health coverage, and utility bill aid.  

The PBH serves Harris County individuals and families living below the federal poverty line, those facing economic challenges due to low-wage jobs or unemployment, cost-burdened renters at risk of eviction, and individuals considered under-enrolled—that is, not enrolled in all of the benefits for which they may qualify. PBH seeks to assist people in determining their eligibility for various benefits and enables them to apply for them independently, via a call center, or through an in-person navigator.  

Additionally, PBH provides community-based organizations with tools for coordinated intake, closed-loop referrals, and system-wide data. Currently, the PBH is partnering with the Chinese Community Center, Catholic Charities, Epiphany Community Health Outreach Services, and Harris County Public Health to enroll individuals with plans to add additional partner agencies as the program expands. This initiative empowers families to increase their income, reduce poverty, and achieve economic mobility, breaking down silos and creating a sustainable support system.   

Although Connective’s solution to the underutilization of public benefits is new to the Houston area, the idea is not a new model and has been successfully implemented in other major cities, including the City of Philadelphia where, as of January 2021, their BenePhilly programs has helped more than 125,000 residents secure over $1.6 billion in benefits.  

The “Benefits Cliff” 

Public assistance offers notable advantages, but there are some perceived drawbacks that can create barriers to economic mobility, such as the “benefits cliff’—a situation where an increase in earnings pushes an individual or family above the eligibility threshold for public benefits. This means that individuals can lose access to public benefits as their income increases, even if they are still struggling financially, and even though they are making more through their employer, their overall net income could decrease due to the loss of these public benefits. 

The benefits cliff doesn’t diminish these programs’ impact but highlights structural barriers to economic mobility. Issues like abrupt cutoffs, inconsistent eligibility rules, and lack of gradual phase-outs can make transitioning off assistance difficult. Solutions include: 

• Extending benefits temporarily or phasing out aid as income increases.  
• Standardizing eligibility across public benefits to reduce confusion and a sudden loss of wages. 
• Raising or eliminating asset limits to encourage savings. 

Strengthening Upward Mobility 

Greater Houston Community Foundation (Foundation) aims to elevate organizations implementing innovative and impactful approaches to advancing economic mobility within Harris County through its High-Impact Grantmaking initiative. Public benefits play a crucial role in reducing poverty and fostering economic mobility. By providing financial stability, public benefits enable individuals to invest in opportunities such as education, skills training, and stable employment, increasing their prospects for upward mobility. 

We are excited to continue to amplify giving through our High-Impact Grantmaking initiative, which serves as another avenue for attracting resources and highlights the highest-potential solutions in Houston.  The Foundation’s Community Impact work emphasizes that achieving meaningful progress in Houston requires collaboration among multiple institutions, organizations, leaders, and sectors. No one entity, leader, or sector can drive meaningful progress in Houston alone. Through our High-Impact Grantmaking, we aim to serve as a catalyst and collaborative partner, deepening our impact through data, convening, and strategic partnership where high-impact philanthropy happens. 

For 30 years, the Foundation has built deep relationships through honoring donor intent and igniting meaningful change with our clients. The Foundation will always help connect donors to the causes they care about, and our community impact work is another way the Foundation addresses essential community needs. Interested in learning more about our Community Impact Fund? Contact Tyler Murphy, Senior Advisor, Charitable Solutions to engage today!  

The selection process for the High-Impact Grantmaking initiative incorporated a robust multi-level review process designed to ensure maximum fairness, transparency, and comprehensiveness in evaluating all submissions. The outcome of this process reflects the recommendations made by an independent Community Grants Advisory Committee. The recommendations put forth by the Committee were closely reviewed and approved by the Foundation’s Community Impact Committee and its Governing Board.

More Helpful Articles by Greater Houston Community Foundation: 

• The Power of Place-Based Initiatives: Transforming Houston’s Communities
• Building a Stronger Houston: A Committee’s Commitment to Impactful Grantmaking
• 30 Ways We Amplify Giving
• Bob Harvey’s Amplified Giving: Evolving Philanthropy to Shape Houston’s Future

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