Impact of a cash subsidy program for families of children with severe developmental disabilities

The impact of a cash subsidy program on 81 families raising children with severe handicaps was examined. Families were interviewed prior to receiving the $225 monthly subsidy and one year later. Mothers reported significantly less family stress, particularly related to financial stress, and enhanced life satisfaction. Furthermore, they were less likely to anticipate out-of-home placement for their child after receiving the subsidy. In general, lower income and black mothers were less likely to plan placement. However, the number of families stating that they planned placement was too small to allow us to fully explore the interrelations between out-of-home placement and various social, cultural, and economic factors.