11 Forgotten Government Programs That Once Gave Out Free Money
These overlooked U.S. government initiatives once handed out cash or valuable benefits, no strings attached.
- Chris Graciano
- 3 min read
Throughout American history, various government programs provided direct financial assistance to citizens, often with little public awareness. While some were responses to economic crises, others aimed to support specific communities or test new economic theories. Today, many of these programs are defunct or transformed, but their legacies offer insights into past governmental approaches to financial aid.
1. Federal Surplus Commodities Corporation (1933–1942)
Chinmaya S Padmanabha on Wikimedia Commons
Established during the Great Depression, this agency aimed to stabilize agricultural prices by purchasing surplus goods and distributing them to needy families. Beneficiaries received items like canned beef, beans, and even coal, directly aiding millions during hard times.
2. Nixon’s Family Assistance Plan (1969 Proposal)
Louis Fabian Bachrach, Jr. on Wikimedia Commons
President Nixon proposed a guaranteed annual income for families, aiming to replace the existing welfare system. While the plan promised direct cash payments to low-income households, it faced opposition and never passed Congress.
3. Earned Income Tax Credit (EITC)
Simon Cunningham on Flickr
Introduced in 1975, the EITC provides refundable tax credits to low to moderate-income working individuals and families. Unlike typical tax deductions, eligible recipients can receive money back even if they owe no taxes.
4. Alaska Permanent Fund Dividend (Established 1982)
Bernard Spragg. NZ on Flickr
Funded by oil revenues, Alaska’s Permanent Fund Dividend distributes annual payments to all eligible residents. Amounts vary yearly but have reached over $2,000 per person in some years.
5. Cherokee Casino Revenue Distributions (Since 1996)
Warren LeMay on Flickr
The Eastern Band of Cherokee Indians in North Carolina began distributing casino profits to tribal members in 1996. These biannual payments have significantly improved community well-being, leading to higher graduation rates and reduced crime.
6. Universal Basic Income Pilot Programs
Blogging Guide on Unsplash
Various U.S. cities have experimented with UBI pilots, providing residents with regular, unconditional cash payments. For instance, Stockton, California, gave $500 monthly to selected individuals, resulting in improved employment rates and mental health.
7. Emergency Rental Assistance Program (2020–2022)
Julian Wan on Unsplash
In response to the COVID-19 pandemic, the federal government allocated billions to assist renters facing eviction. Funds were distributed through state and local agencies, covering rent and utility costs for eligible households.
8. Low-Income Home Energy Assistance Program (LIHEAP)
Maghsoud Moradi on Unsplash
LIHEAP offers financial aid to low-income households struggling with heating and cooling costs. Grants, typically ranging from $500 to $1,500, are paid directly to utility companies on behalf of recipients.
9. Lifeline Program (Established 1985)
Gilles Lambert on Unsplash
Aimed at ensuring affordable communication services, Lifeline provides monthly discounts on phone or internet bills for eligible low-income consumers. Participants receive up to $9.25 off their monthly bills, helping bridge the digital divide.
10. Supplemental Nutrition Assistance Program (SNAP)
U.S. Department of Agriculture on Flickr
Formerly known as food stamps, SNAP offers monthly benefits to low-income individuals and families for purchasing food. Benefits are loaded onto an Electronic Benefit Transfer (EBT) card, usable at authorized retailers.
11. Unclaimed Money Programs
Allef Vinicius on Unsplash
Various government agencies hold unclaimed funds from sources like tax refunds, bank accounts, and insurance policies. Citizens can search for and claim these funds through official databases such as USA.gov and TreasuryDirect.