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Pediatrician tells committee Rx Kids cash prescriptions linked to earlier prenatal care, lower smoking and fewer child‑welfare allegations

May 20, 2025 | Families, Children and Seniors, House of Representative, Committees , Legislative, Michigan


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Pediatrician tells committee Rx Kids cash prescriptions linked to earlier prenatal care, lower smoking and fewer child‑welfare allegations
Dr. Mona Hanna, associate dean for public health at Michigan State University and a pediatrician, told the House Families and Veterans Committee that Rx Kids — a public‑private program that delivers cash to pregnant mothers and caregivers — is associated with measurable improvements in prenatal care, maternal wellbeing and some birth outcomes in communities where it has been implemented.

Hanna described the program design: a $1,500 prenatal cash prescription followed by monthly $500 infant payments (in some communities) for either six or 12 months depending on local fundraising. She said the program uses a TANF (Temporary Assistance for Needy Families) provision called nonrecurring short‑term benefits (NRST) to fund the prenatal payment and the first three infant payments for low‑income families, while philanthropic funds and other public dollars cover additional community expansion and enable broader eligibility.

Why it matters: Hanna said the program is focused on a time of elevated economic vulnerability — prenatal through the first year of life — and that evidence suggests short, targeted cash transfers in that window can reduce later costs to child welfare, neonatal intensive care and other public programs. Hanna cited administrative and evaluation data from Flint and other pilot sites showing increased prenatal care uptake, reductions in smoking during pregnancy, fewer NICU admissions and a decline in child‑welfare allegations.

Program reach and finance: Hanna said Rx Kids launched in January 2024 in Flint and expanded to Kalamazoo, Pontiac and five counties in the Eastern Upper Peninsula, among other places. She said the initiative has $10,000,000 in cash distributed to date and that the project has secured commitments totaling roughly $105,000,000 in public and philanthropic funding over the last two years, but later clarified that not all committed funds are held as cash on hand and that invoicing to government and philanthropic partners is the mechanism used to deliver funds.

Administration and costs: Rx Kids uses an outside payments administrator (GiveDirectly) for low‑overhead delivery, Hanna said, and she told lawmakers that program overhead does not exceed about 15 percent. She described local funding matches from cities and counties (for example, Kalamazoo and Pontiac) and philanthropic contributions (Stryker Foundation, Bezos Family Foundation and others) used to extend the monthly payments beyond the TANF‑funded portion.

Evidence and outcomes: Hanna summarized program evaluation results she described as “pretty awesome,” including improved housing and nutrition security, increased prenatal care in the first trimester, reductions in third‑trimester smoking, better birth weights and gestational age, lower NICU use, and a decrease in child‑welfare reports in pilot areas. She also cited a Flint Chamber analysis estimating roughly a 1.57 return on investment locally and a modeled statewide savings figure discussed in program materials.

Questions and concerns: Legislators asked about overlap with existing DHHS programs and TANF, potential vulnerability to federal TANF policy changes, duration of monthly payments, take‑up rates and accountability for committed funds. Hanna said the NRST TANF provision allows short‑term cash without triggering lifetime benefits/work requirement limits, but acknowledged uncertainty about future federal policy changes. She said the duration of monthly payments (six versus 12 months) depends on how much local philanthropic and public match funding is available. Hanna described take‑up as “near‑universal” in pilot sites (percentage not specified) and volunteered to provide additional data and longitudinal research results as evaluations continue.

Notable quote and story: Hanna shared a family story from Flint — a mother who participated in planning and later received Rx Kids support after moving into recovery — and said, “this program made my family whole again,” attributing the quote to the child’s mother to illustrate how one family used the cash to buy diapers, car seats and other basics and to regain custody of older children.

Research and next steps: Hanna said MSU and program partners are conducting longitudinal evaluations, including large‑scale administrative data analysis and maternal surveys, to track outcomes beyond the first year of life and to model long‑term fiscal impacts. She also noted that the governor’s executive budget included $20,000,000 to continue Rx Kids expansion.

Ending: Committee members thanked Hanna; no formal action or vote occurred during the hearing. Members raised questions about federal TANF changes and work requirements and requested follow‑up information on program finances, take‑up rates and longer‑term outcome data.

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