Monthly Cash Gifts for Child Development

(BFY Trial)

Age: 18+

Sex: Female

Trial Phase: Academic

Sponsor: University of California, Irvine

Disqualifiers: Income above poverty, ICU admission, others

No Placebo Group All trial participants will receive the active study treatment (no placebo)

Compensation: Varies

Number of Visits: 4

Duration: 76 months

What You Need to Know Before You Apply

What is the purpose of this trial?

This trial aims to determine if monthly cash gifts to low-income families enhance the cognitive, emotional, and brain development of their young children. The study involves two groups: one receives $333 monthly, while the other gets $20. Researchers will monitor the children's development and family well-being over time. Mothers of newborns with incomes below the federal poverty line, who do not plan to move soon and speak English or Spanish, may be suitable for this study.

As an unphased trial, this study provides a unique opportunity to contribute to understanding the impact of financial support on child development.

Do I need to stop my current medications to join the trial?

The trial information does not specify whether you need to stop taking your current medications. It seems unlikely that medication use would affect participation, as the study focuses on the impact of cash gifts on child development.

Is there any evidence suggesting that this trial's treatments are likely to be safe?

In a previous study, researchers found that giving low-income mothers $333 each month did not harm their children compared to those who received a smaller amount. The cash gifts aimed to help families support their children's development. Studies have shown that these payments reduced financial struggles for families without causing any negative effects. Another study demonstrated that this financial support could positively affect children's brain activity, suggesting it is beneficial rather than harmful. Overall, no reports have linked negative effects to the cash payments. ^{1 2 3 4 5}

Why are researchers excited about this trial?

Researchers are excited about this trial because it explores the impact of financial support on child development, a novel approach compared to traditional interventions like educational programs or nutritional supplements. Instead of focusing on direct services, this trial provides families with monthly cash gifts, allowing them flexibility to address their unique needs, which may include improving living conditions, accessing better education, or ensuring proper nutrition. By granting families the autonomy to decide how best to use these funds, researchers hope to uncover insights into how financial stability can affect developmental outcomes in children, potentially leading to broader policy implications.

What evidence suggests that this trial's treatments could be effective for child development?

This trial will compare the effects of different monthly cash gift payments on child development. Participants will receive either $20 or $333 each month for 76 months. Research has shown that unconditional cash transfers, such as monthly cash gifts, can influence family spending on children. One study found that families receiving larger cash gifts spent about $47 more each month on their children. However, other studies have indicated that these cash payments did not significantly improve children's vocabulary, mental skills for managing tasks, or early reading skills. Additionally, after three years of receiving these payments, there was no noticeable improvement in how mothers rated their children's development. While the extra money alters family spending habits, it hasn't consistently demonstrated a clear impact on early child development. ^{1 3 6 7 8}

Who Is on the Research Team?

Greg Duncan, PhD

Principal Investigator

University of California, Irvine

Are You a Good Fit for This Trial?

This trial is for mothers over 18 with newborns not needing intensive care, living in the state of recruitment, and speaking English or Spanish. They must plan to stay in the area for at least a year and have a household income below the federal poverty line.

Inclusion Criteria

My newborn is in the nursery and doesn't need intensive care.

Mother not 'highly likely' to move to a different state or country in the next 12 months

Infant to be discharged in the custody of the mother

Exclusion Criteria

Mothers will not be eligible unless all of the above seven criteria are met.

Timeline for a Trial Participant

Screening

Participants are screened for eligibility to participate in the trial

2-4 weeks

Treatment

Mothers receive monthly cash gift payments for 76 months to assess the impact on child development

76 months

Follow-up

Participants are monitored for cognitive, socio-emotional, and brain development at ages 4, 6, and 8

8 years

Lab visits at ages 4, 6, and 8

Data Collection Waves

Data collection occurs at 12, 24, 36, 48, 72, and 96 months to assess various developmental and family metrics

8 years

What Are the Treatments Tested in This Trial?

Interventions

• Monthly cash gift payments of $20
• Monthly cash gift payments of $333

Trial Overview The study tests if monthly cash gifts ($333 vs $20) to low-income families affect their children's brain development. It measures cognitive, language, self-regulation skills at ages 2-4 and brain activity using EEG at age 4.

How Is the Trial Designed?

Group I: Monthly cash gift payments of $333 Experimental Treatment 1 Intervention

These subjects receive $333 each month for 76 months via debit card.

Group II: Monthly cash gift payments of $20 Active Control 1 Intervention

These subjects receive $20 each month for 76 months via debit card.

Who Is Running the Clinical Trial?

University of California, Irvine

Lead Sponsor

Trials

580

Recruited

4,943,000+

Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD)

Collaborator

Trials

2,103

Recruited

2,760,000+

University of Minnesota

Collaborator

Trials

1,459

Recruited

1,623,000+

University of Michigan

Collaborator

Trials

1,891

Recruited

6,458,000+

University of New Orleans

Collaborator

Trials

1

Recruited

1,000+

University of Maryland

Collaborator

Trials

171

Recruited

325,000+

University of Wisconsin, Madison

Collaborator

Trials

1,249

Recruited

3,255,000+

New York University

Collaborator

Trials

249

Recruited

229,000+

University of Nebraska

Collaborator

Trials

563

Recruited

1,147,000+

Duke University

Collaborator

Trials

2,495

Recruited

5,912,000+

Citations

1. pmc.ncbi.nlm.nih.gov pmc.ncbi.nlm.nih.gov/articles/PMC12350725/

Effects of unconditional cash transfers on family processes ... This study examines causal impacts of unconditional cash transfers on economic hardship and key family processes that may affect children's ...

2. nber.org nber.org/system/files/working_papers/w33844/w33844.pdf

AGE It is possible that the monthly cash gifts were simply not large enough to affect early child development. The annual BFY high-cash gift transfers amounted to ...

3. nytimes.com nytimes.com/2025/07/28/us/politics/cash-payments-poor-families-child-development.html

Study May Undercut Idea That Cash Payments to Poor ... Children in the families getting the higher cash payments did no better on tests of vocabulary, executive function, pre-literacy skills or ...

4. jamanetwork.com jamanetwork.com/journals/jamanetworkopen/fullarticle/2809968

Unconditional Cash Transfers and Maternal Assessments ... This preregistered study found that 3 years of monthly, unconditional cash transfers for families experiencing poverty did not improve maternal ...

5. childandfamilypolicy.duke.edu childandfamilypolicy.duke.edu/wp-content/uploads/2025/03/BFY-Monthly-Cash-Gift-at-Age-4.pdf

BFY Brief 4: Monthly Cash Gift at Age 4 High-cash gift families reported spending $47 more in the last month on child-specific goods, on average through 4 years, than low-cash gift families.

6. childandfamilypolicy.duke.edu childandfamilypolicy.duke.edu/wp-content/uploads/2024/06/BFY-Monthly-Cash-Gift-Increases-Families-Investments-in-Young-Children.pdf

BFY Monthly Cash Gift Increases Families' Investments in ... Families were randomized to receive a high-cash ($333/month) or low-cash. ($20/month) gift for the first several years of their child's life, with payments.

7. pnas.org pnas.org/doi/10.1073/pnas.2115649119

The impact of a poverty reduction intervention on infant ... This study demonstrates the causal impact of a poverty reduction intervention on early childhood brain activity.

8. parentdata.org parentdata.org/does-giving-families-money-improve-child-outcomes/

Does Giving Families Money Improve Child Outcomes? Researchers tested whether giving low-income mothers $333/month (versus $20/month) after birth improves family and child outcomes, using a ...