For those struggling to make ends meet, federal and state programs can offer crucial support. These taxpayer-funded initiatives help cover expenses like utilities, groceries, college tuition, and even a down payment on a home.
While each program has specific qualifications — often based on income — being prepared with the right information can streamline the application process.
Financial Help For Utility Bills
The Low Income Home Energy Assistance Program helps low-income households cover heating and cooling costs, with grants issued by states based on income eligibility.
The Lifeline program offers discounts of up to $9.25 per month on phone or internet services, available to those meeting eligibility requirements or already enrolled in federal assistance programs like Medicaid or public housing.
Programs To Help Cut Food Costs
The Supplemental Nutrition Assistance Program (SNAP) assists low-income families by providing monthly benefits through an Electronic Benefits Transfer (EBT) card, which can be used at authorized stores.
The National School Lunch Program offers free or reduced-price meals for low-income children attending public or nonprofit private schools. Parents or caregivers need to submit the applications through the school or district.
Get Help With Child Care Expenses
The Child Care and Development Fund, managed by the U.S. Department of Health and Human Services, provides financial assistance to low-income families to help cover child care expenses. The annual cost of child care ranges from nearly $5,000 in Mississippi to over $22,600 in Washington, D.C.
Grants are available for families where the primary caregiver is working, attending job training, or pursuing education, and apply to children under 13. To apply, contact the Child Care and Development Fund in your state.
Affordable Health Insurance
Health insurance can be expensive, but help is available. If you buy coverage through HealthCare.gov, you may qualify for a premium tax credit to lower your monthly payments.
Children in households that don't qualify for Medicaid but can't afford regular coverage may be eligible for the Children's Health Insurance Program (CHIP), which covers checkups, immunizations, prescriptions, and emergency visits. Coverage varies by state.
Apply For College Grants
College grants, such as the federal Pell Grant, can help cover tuition costs. For the 2024-25 year, eligible students could receive up to $7,395, which doesn't need to be repaid if you maintain enrollment status.
Grant amounts depend on financial need, attendance costs, and enrollment status. To apply, complete the Free Application for Federal Student Aid (FAFSA), which also qualifies you for other state and institutional grant, and even scholarships.
The Federal Supplemental Educational Opportunity Grant (FSEOG) is available for undergraduates with high financial need. Amounts range from $100 to $4,000 per year, and it doesn't need to be repaid unless eligibility criteria, such as change in enrollment status from full-time to part-time, are broken.
The Teacher Education Assistance for College and Higher Education (TEACH) grant is available for students pursuing a career in teaching. Recipients must agree to a teaching service commitment and meet certain academic criteria.
Money-Saving Resources
When finances get tight, there are ways to keep more money in your pocket.
Lower your bills by considering income-driven student loan repayment plans, consolidating debt, or raising your deductible.
Adjust your budget by automating savings, cutting unnecessary expenses, and seeking deals. Use community resources, loyalty programs, and online marketplaces for free items.
Focus on saving in one or two areas, like groceries, by using what you have, sticking to a shopping list, and choosing generic brands.
Beware of 'Free Money' Scams
Remember, the government rarely contacts individuals offering free money, especially for personal expenses or new business ventures. If you encounter such an offer, do not pay or share your personal information.
While legitimate financial assistance is available, be cautious of scams claiming to offer "free money" from the government. These scams can appear through texts, emails, social media, or fake websites. Look for suspicious sender addresses, strange domain names, or misspelled messages.
