Plus, new research on safety net programs, Temporary Protected Status for Venezuelans, and supporting postsecondary students.
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Brookings Center for Economic Security and Opportunity

March 12, 2025

In this edition:

  • Check out our new publications on improving socioeconomic diversity at highly endowed colleges, the Department of Education and the Trump administration, supporting postsecondary students, welfare reform and the evolution of the safety net, and Temporary Protected Status for Venezuelans in jeopardy. 
  • What we’re reading: Rising college costs and family financial health, police violence and community cooperation, and administrative burdens harm on the social safety net.  
  • This month’s top chart answers the question: Did welfare reform end the safety net as we knew it? 
  • Worth a click: How proposed medical research cuts affect colleges and hospitals in every state, keeping track of federal spending, and the future of federal public data access. 
  • For your calendar: Abundance with Ezra Klein and Derek Thompson, Advancing residents’ upward mobility, and What can we learn from Louisiana's K-12 progress? 

      This edition was written by Tara Watson and Jonathon Zars.

       

      💡 New from us: Improving socioeconomic diversity at highly endowed colleges, the Department of Education and the Trump administration, supporting postsecondary students, welfare reform and the evolution of the safety net, and Temporary Protected Status for Venezuelans in jeopardy.

       

      Elite private colleges and universities educate a small slice of American college students, but their large endowments create opportunities to provide an affordable, high-quality education to those with lower incomes. Phillip Levine documents the recent strides elite colleges have made in improving enrollment of Pell Grant eligible students. Greater recruitment efforts on the part of these institutions along with increased financial aid are likely contributors. 

       

      College access and success don’t happen by chance—they require strategic support from researchers, policymakers, and institutions. Sarah Reber’s recent analysis adds to her prior work on how to improve college access and completion. She argues that improving college access and completion requires efforts from multiple stakeholders and points out ways in which each can bolster college-going and college success.  

       

      What would happen if the U.S. Department of Education were drastically restructured—or even eliminated? Katharine Meyer, Rachel M. Perera, Sarah Reber, and Jon Valant tackle the most pressing questions in our ongoing series, "Why We Have and Need a U.S. Department of Education." They explore the legal challenges to dismantling the department, the potential consequences of further workforce reductions, and the uncertain future of critical programs like Title I and IDEA. Their analysis sheds light on the risks and realities of reshaping federal education policy. 

       

      Since welfare reform in 1996, the safety net for low-income families has shifted from direct cash assistance to tax credits and in-kind benefits. Lucie Schmidt, Lara Shore-Sheppard, and Tara Watson analyze how these changes have widened the gap between support for working families and those without earnings. They explore two core debates that continue to shape policy: the balance between incentivizing work and alleviating material hardship, and the division of responsibility between states and the federal government. Their analysis unpacks how these tensions define the future of social safety net programs. 

       

      Stan Veuger and Tara Watson provide expert insight to the U.S. District Court for the Northern District of California on the consequences of ending Temporary Protected Status (TPS) for Venezuelans. Without TPS, hundreds of thousands of Venezuelans will lose legal status, work authorization, and protection from deportation. Deporting Venezuelan TPS holders would require cooperation with the Maduro regime, clashing with the administration’s stance on his government’s legitimacy. 

       

      📖 What we’re reading

       

      The rising cost of college doesn’t just affect students—it also impacts their families’ financial health. A recent NBER working paper combines California school financial aid data with family credit records. The study first explores how families adjust their finances in anticipation of a child enrolling in college, revealing that borrowing patterns and creditworthiness shifts vary significantly by income level. It then analyzes the effects of unexpected increases in college costs on parental debt, finding that parents often turn to education and home equity loans to cover rising expenses. This reliance on additional borrowing is also associated with higher rates of debt delinquency among parents. The findings highlight how the financial burden of college extends beyond students, straining household finances in ways that can have long-term consequences. 

       

      High-profile acts of police violence lower community engagement and cooperation with law enforcement. A recent study published in AER Insights examines this impact by analyzing the ratio of gunshots to 911 call volume in U.S. cities before and after George Floyd's murder. This measure helps differentiate between actual crime reductions and decreased public willingness to report incidents. The study finds that in the months following Floyd’s death, 911 calls per gunshot dropped by 50% across multiple cities. The researchers argue that these findings are the result of distrust and skepticism toward law enforcement in affected communities. 

       

      Administrative burdens harm the effectiveness of the social safety net. Pamela Herd and Donald Moynihan examine how these burdens impose learning, compliance, and psychological costs on applicants, making it harder for those in need to navigate support programs. They argue that policymakers and economists must recognize administrative burdens as barriers that undermine program goals and harm recipients. Their framework highlights the need for technological solutions to streamline access and ensure the safety net reaches those it is designed to help.

       

      📊 Top chart: Winning the bread and baking it too

      Major Means-Tested Programs Expenditures per capita, 1965-2022. Large rise in Medicaid expenditures and significant decline in AFDC/

      Over the past half-century, major U.S. safety net programs have become more generous, yet their structure has shifted significantly. Lucie Schmidt, Lara Shore-Sheppard, and Tara Watson analyze how traditional cash-transfer programs have declined, replaced by in-kind benefits like Medicaid and the Supplemental Nutrition Assistance Program. While these changes have expanded overall support and improved work incentives, they have also left out key populations, particularly low-income children in households without working adults —those who often face the greatest financial hardship.

       

      ➡️ Worth a click

        • Check out this piece to understand how recently proposed medical research cuts would affect colleges and hospitals in every state.
        • Keep track of the current administration's efforts to freeze and impound spending with this tool.
        • Watch this webinar about the future of federal public data access. 

         

         

        📅 For your calendar

         

        What Can We Learn from Louisiana’s Progress in K–12 Education? 

        American Enterprise Institute 

        Wednesday, March 19, 4:00 p.m. - 5:15 p.m. EDT 

        Watch Online 

         

        Abundance with Ezra Klein and Derek Thompson 

        Sixth & I + The Atlantic 

        Thursday, March 20, 7:00 p.m. EDT 

        Watch Online or Attend In-Person 

         

        Advancing Residents' Upward Mobility by Fostering Dignity and Belonging, Economic Success, and Power and Autonomy 

        The Urban Institute 

        Wednesday, March 26, 1:00 p.m. - 2:30 p.m. EDT 

        Watch Online 

         

        About the Center for Economic Security and Opportunity at Brookings

         

        The Center for Economic Security and Opportunity (CESO) produces data-driven, nonpartisan analysis to address the United States’ most challenging social policy questions. In a noisy and polarized world, the Center is a trustworthy source for the information and tools policymakers need to build an economy that works for everyone.

         
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