New data from Rx Kids—including a new spending report from participating families and an updated public dashboard—show that when families receive direct support during pregnancy and infancy, they overwhelmingly spend it on essential needs. Nearly three-quarters (74%) of mothers report using their Rx Kids support on baby supplies like diapers and formula, along with food, rent, and utilities. Since launching in 2024, Rx Kids has delivered more than $28 million in direct support to families across Michigan, spending that researchers estimate has already generated more than $46 million in total economic activity and supported approximately 433 jobs as those dollars flow through neighborhood businesses and local communities.
New Spending Report Shows Dollars Stay Local and Meet Essential Needs
Newly released findings from biannual participant surveys conducted by Rx Kids provide insight into how families use their Rx Kids payments. Since May 2024, 2,288 survey responses have been collected across participating communities.
Across surveys, 74% of mothers report spending on baby supplies such as diapers and formula. Families also frequently report spending on food (59%), rent (37%), utilities (35%), and transportation (15%). The data show virtually no spending on luxury or discretionary items, reinforcing decades of research that families use direct support to meet essential needs, often at local grocery stores, pharmacies, landlords, and service providers.
“Pregnancy and the first months of a baby’s life are both a critical time for development and one of the most financially challenging periods for families,” said Dr. Mona Hanna, director of Rx Kids and associate dean of public health at Michigan State University College of Human Medicine. “Rx Kids dollars help families pay for diapers, food, rent, and transportation to prenatal visits, but they also flow straight into neighborhood businesses like grocery stores and child care centers, supporting jobs and local economies. We are seeing healthier pregnancies, more stable families, and measurable economic growth at the same time.”
From diapers at the pharmacy to groceries at the neighborhood market, Rx Kids dollars are being spent in local communities. A new economic impact dashboard now shows how that spending strengthens economies across Michigan.
New Rx Kids Dashboard Tracks Economic Impact Across Michigan
Rx Kids has also launched an updated public dashboard that for the first time brings together economic impact, job creation, and program reach data in one accessible place, offering a clear picture of how investing directly in moms and babies strengthens local economies across Michigan.
Available at RxKids.org, the updated dashboard features economic impact estimates based on modeling by the W.E. Upjohn Institute for Employment Research, alongside previously available enrollment and demographic indicators from Rx Kids participants.
Since launching in 2024, Rx Kids has delivered more than $28 million in direct cash support to thousands of families. As those dollars are spent in local communities on essential goods and services, they generate additional economic activity beyond the direct payments themselves.
Based on Upjohn modeling, Rx Kids has generated an estimated $46.55 million in total economic impact and supported approximately 433 jobs through what researchers describe as a “trickle-up” effect. These spillover benefits are in addition to the money delivered directly to families and reflect how household spending circulates through local economies.
“The Rx Kids program shows that direct payments to new parents not only stabilize household finances but also lift employment, wages and total income across the community,” said Brad Hershbein, senior economist and deputy director of research at the Upjohn Institute for Employment Research in a recent commentary. “This type of support for families thus can also function as an indirect regional economic development strategy.”
Originally launched in Flint in 2024, Rx Kids delivers direct support during the prenatal and infancy period, which is one of the most financially challenging and critical for child development. Early results from Rx Kids communities across Michigan show near-universal enrollment, improved family stability, reduced stress, and better health for moms and babies, while also generating local economic benefits as dollars flow directly into neighborhood businesses.
Rx Kids is led by Michigan State University and administered by GiveDirectly. As a public–private partnership, Rx Kids is funded through both public investment and philanthropic leadership. In a historic bipartisan commitment, the State of Michigan invested $250 million to expand the program to additional high-need communities over the next three years. To date, the program is available in 39 Michigan communities. As new families enroll and new communities are added, the dashboard will continue to be updated to show the impact on families, local economies, and job creation across Michigan.
