Government Assistance Programs: What's Available and Where to Apply

The federal government offers a variety of assistance programs for individuals and businesses, often in partnership with states. Here's an overview of major ones, key information about them, and how to apply if eligible.

Financial Assistance for Individuals and Families

These programs provide benefits in the form of payments, goods, or services to help with basic living expenses if you qualify due to low wages.

Unemployment Insurance

Unemployment insurance (UI) is a federal and state program. The states administer the program, which the federal government largely funds through federal unemployment tax (FUTA) on employers. States may also collect their own state unemployment tax (SUTA).

The goal of unemployment insurance is "to provide temporary financial assistance to unemployed workers who are unemployed through no fault of their own," so not everyone who has lost a job qualifies.

You can apply through your state unemployment insurance office.

Pros of Unemployment Insurance

• Provides partial wages until you are rehired or find another job
• Allows time to explore new/better employment opportunities
• Gives an opportunity to pursue education or training in a new career path

Cons of Unemployment Insurance

• Provides typically less income than when working
• Pays regular benefits for only 26 weeks, unless extended by law
• Does not include employer-provided healthcare benefits
• Is subject to income tax

Temporary Assistance for Needy Families (TANF)

Temporary Assistance for Needy Families (TANF), once known as welfare, is another federally funded, state-run benefits program designed to help families achieve independence following temporary difficulty. Qualified recipients may receive help with food, housing, home energy, childcare, and job training. TANF recipients must engage in some type of work activity as defined by their state.

Each state runs its TANF program and sets the eligibility criteria. You can apply at your local county social services agency or call your state TANF office for local contact information to sign up for benefits. Qualifying for TANF does not disqualify you from other government benefits.

Pros of TANF

• Provides needed assistance for families
• Targets specific help for children
• Can supplement income if you are already working
• Provides job training to encourage independence

Cons of TANF

• Imposes very low income eligibility requirements
• Can create a negative social stigma
• May provide uneven coverage due to individual state rules
• May discourage job hunting

Social Security Disability Insurance (SSDI) Benefits

Social Security Disability Insurance benefits are available to people who cannot work for at least one year due to a medical condition or who are expected to die from that condition.

To be eligible, you must:

• Have worked in a job or jobs covered by Social Security
• Meet Social Security's definition of disability
• Have worked long enough and recently enough to qualify for disability benefits

Additional information about SSDI can be found in the Social Security Disability Benefits brochure. The Social Security Disability Planner helps you determine if you are eligible. If you believe you qualify, you can apply online.

Pros of SSDI

• Provides monthly income
• Freezes Social Security earnings record, so workers aren't penalized for not working while receiving SSDI
• Provides possibility of tax-free income
• Provides rehab and back-to-work incentives

Cons of SSDI

• Includes very strict eligibility requirements
• Can take a long time to process and approve SSDI claims
• Requires regular eligibility reviews, depending on the expectation of medical condition improvement/recovery, in anywhere from six months to seven years
• Can cause loss of Medicaid or SSI benefits

Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is a federal income program administered but not funded by Social Security. SSI is designed to meet the basic needs of older, blind, and/or disabled Americans who have little or no income. SSI consists of a monthly payment to help with the cost of food, clothing, and shelter and can let you qualify for Medicaid coverage as well as food stamps.

SSI qualification requirements generally require you to be 65 or older and blind or disabled. Among other things, you must also:

• Have limited income
• Have limited resources
• Be a U.S. citizen or national or "qualified alien"

The SSI application process web page explains how to apply and includes an extensive How Someone Can Help You With Your SSI section.

Pros of SSI

• Allows for simultaneously qualifying for Medicaid and food stamps
• Requires no prior work history
• Allows for concurrent Social Security qualification in certain cases

Cons of SSI

• Imposes stringent eligibility requirements, which can be negatively affected by living arrangements
• Requires significant documentation to qualify
• Includes slow claims and appeals processes
• Imposes significant asset restriction rules

The table below compares TANF with both SSDI and SSI regarding eligibility.

Source: Social Security Administration

Student Financial Aid

The Free Application for Federal Student Aid (FAFSA) is the government access point for all forms of student financial aid, including grants and scholarships, student loans, and work-study programs. These programs provide financial help to college students with demonstrated financial needs.

Eligibility is based on:

• Financial need
• Being a U.S. citizen or an eligible noncitizen
• Maintaining good standing on your federal student loans
• Acceptance into an eligible degree program
• Maintaining adequate academic progress

Additional requirements can be found on the Federal Student Aid web page. The Federal Student Aid Application Process begins with FAFSA.

Pros of Student Financial Aid

• Helps to pay for college
• Offers possible oportunities for federal loan deferment
• Gives chance to attend better colleges
• Creates good credit if loans are paid on time
• Offers some paths toward student loan forgiveness

Cons of Student Financial Aid

• Requires loan repayment, except in cases of loan forgiveness, and loans can be difficult to discharge through bankruptcy proceedings
• Includes lifetime limits on Pell Grants
• Can pose risks to credit if loans aren't repaid

Status of Student Loan Payments

The COVID-19 moratorium on student loan payments and interest came to an end on September 30, 2023. Interest began accumulating again on September 1, 2023.

The Supreme Court in June 2023 blocked an effort from the Biden Administration to forgive up to $20,000 per borrower in student loan debt at a cost of $430 billion.

Following the Supreme Court decision, the Biden administration launched the Saving on a Valuable Education (SAVE) plan, a new income-driven repayment option. The SAVE plan lowers monthly payments to 5% of discretionary income for undergraduate borrowers. It also raises the discretionary income threshold so that a single borrower earning about $15 per hour would have their monthly payment set to $0. In addition, the SAVE plan does not capitalize unpaid interest, which ensures that balances don't grow as long as payments are kept up to date. It also provides early forgiveness for low-balance borrowers.

Affordable Connectivity Program (ACP)

The Affordable Connectivity Program (ACP) replaced the Emergency Broadband Benefit (EBB) program at the start of 2022. The ACP is an extension of the EBB program, put in place by the Infrastructure Investment and Jobs Act.

The ACP offers a monthly maximum discount of $30 for broadband services ($75 for those on tribal lands) that qualify. The program also grants a one-time discount of up to $100 toward a new laptop, desktop, or tablet purchased from participating providers.

Your household is eligible if household income is at or below 200% of the current Federal Poverty Level (FPL). Your household can also qualify if at least one household member meets one of the following criteria:

• Is eligible for a participating provider's existing low-income internet program.
• Participates in one of these assistance programs: The National School Lunch Program or the School Breakfast Program (including through the USDA Community Eligibility Provision), SNAP, Medicaid, Federal Public Housing Assistance, Supplemental Security Income (SSI), WIC, Veterans Pension or Survivor Benefits, or Lifeline.
• Received a Federal Pell Grant during the current award year.

To apply, do the following:

• Go to ACPBenefit.org to apply online or print an application to mail in.
• Contact your preferred participating provider to select a plan and have the discount applied to your bill.

Pros of the ACP

• Addresses the high cost of broadband, one of the leading causes of the digital divide.
• Can be used alongside other discount programs.
• Includes requirement for internet service providers to give fair warning before discount runs out.

Cons of the ACP

• Has limited funding ($14.2 billion) and may not last as long as the need for it exists.
• May not include providers in all areas.

Housing Assistance Programs for Renters

There are three forms of subsidized rental housing: privately owned subsidized housing, the housing choice voucher (HCV) program (formerly Section 8), and U.S. Department of Housing and Urban Development (HUD) public housing.

With privately owned housing, you find the housing you want and apply for it at the rental office. You can search for housing at Resources.HUD.gov. With HCV, you find your apartment or house, and then the government pays the amount for which you qualify while you pay the difference.

HUD public housing, often used by people who don't qualify for Section 8 housing, requires you to rent from a local public housing authority based on your income. Wait times for both HCV and public housing programs may be long, depending on where you are applying.

To be eligible for privately owned subsidized housing, you must:

• Be within the income limit for your location and the size of your family
• Meet other requirements set by the property owner

To be eligible for housing choice or HUD public housing, you must:

• Be a family, have a disability, or be at least 62 years old
• Fall within program income limits
• Be a U.S. citizen or eligible noncitizen

As noted above, you apply for privately owned housing at the rental office. For the other two programs:

• Contact your local Public Housing Agency.
• Complete an application (requiring information such as income, family size, employer, and bank).
• Provide documentation, such as a photo ID, birth certificates, and tax returns.

Pros of Subsidized Rental Housing

• Provides elow-market rental rates
• Includes government oversight
• Gives opportunity to save for something better
• Allow for choice

Cons of Subsidized Rental Housing

• Can deplete city resources and services
• May encourage residency in areas with high crime rates
• Imposes strict eligibility criteria
• Includes long waiting lists

The table below compares all three housing programs and the requirements for each.

Source: U.S. Department of Housing and Urban Development; USA.gov

Housing Assistance Programs for Home Buyers

HUD has several programs designed to help you purchase a home if you qualify.

FHA loans

One part of HUD, the Federal Housing Administration (FHA), insures mortgages, which makes it easier for buyers to become homeowners thanks to less strict eligibility requirements. The program is popular witelh first-time home buyers but not limited to them.

Eligibility for an FHA loan depends in part on your ability to post a down payment of 3.5% of the purchase price and have a credit score of at least 580. You must also make sure the home is priced within the loan limit for an FHA home in its location. 

To apply for an FHA loan, you must find an approved FHA lender because the FHA doesn't lend the money itself. If you have good credit and the ability to pay 10% to 15% down, you may find a conventional loan is less expensive than an FHA-insured loan.

Homeownership Vouchers

The HUD homeownership voucher program lets low-income families in the HCV program, including those in public housing, use their vouchers to meet monthly mortgage payments and other expenses when buying a home for the first time. Contact your local PHA to find out if your PHA offers this program.

Programs for Active-Duty Service Members and Veterans

The Department of Veterans Affairs (VA) offers home loan programs to active-duty service members, surviving spouses, and veterans. VA loans are provided by private lenders, with the VA guaranteeing a significant portion of the loan. A certificate of eligibility (COE) is required and can be applied for through the Department of Veterans Affairs.

State Housing Programs

In addition to housing programs administered by the federal government, state housing finance agencies and state HUD offices offer special programs, as well.

HUD also funds counseling agencies nationwide that advise on topics related to housing, including buying a home.

This table compares basic eligibility requirements for various government homeownership programs, including FICO credit score and debt-to-income ratio requirements.

Source: U.S. Department of Housing and Urban Development; U.S. Department of Veterans Affairs

Pros of Government Homeownership Programs

• Requires low or no down payment
• Permits those with lower credit scores to qualify
• Does not require mortgage insurance for VA loans
• Provides help for first-time buyers

Cons of Government Homeownership Programs

• Imposes higher mortgage insurance costs (except VA loans)
• Includes restrictive government property standards
• Is limited to primary residences

Food Assistance Programs

From emergency food needs to ongoing nutrition assistance, the federal government, in partnership with states, offers free and low-cost food programs for families and individuals.

Immediate Aid

If you need food quickly, the USDA maintains a National Hunger Hotline—866-3-HUNGRY (866-348-6479)—with information and eligibility requirements available in English and Spanish. The hotline, which will connect you with emergency food providers, government programs, and social service agencies, operates Monday through Friday from 7 a.m. to 10 p.m. Eastern Time.

Supplemental Nutrition Assistance Program (SNAP)

SNAP (previously called food stamps) helps needy families supplement their food budget to move toward self-sufficiency. Eligibility is determined by individual states that administer the program. You apply in the state where you live by contacting your state agency.

Some states allow online applications, while others require your physical presence.

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

WIC provides low-income women and their young children with healthy food, nutrition counseling, and referral to health, welfare, and social services agencies. WIC is a federal grant program administered by the government through 89 WIC agencies and approximately 47,000 authorized retailers.

To be eligible, the mother must be pregnant, nursing, or postpartum (up to six months after birth) with infants (up to a year old) or children (under the age of five). There are additional income requirements posted on the WIC FAQ web page.

Food Programs for School-Age Children

Programs for school-age children include the National School Lunch Program (NSLP), the School Breakfast Program (SBP), and the Summer Food Service Program (SFSP). Eligibility requirements for all three programs are the same. If your family income falls below 130% of the federal poverty guidelines, your child is entitled to free food. If income is between 130% and 185% of guidelines, prices for meals are reduced.

Food Programs for Older Adults

The federal government sponsors two programs designed to get food to low-income older adults. The Senior Farmers' Market Nutrition Program (SFMNP) offers coupons to purchase fresh fruits, vegetables, honey, and herbs at farmers' markets, roadside stands, and farms.

The Commodity Supplemental Food Program (CSFP) provides healthy food every month. You must be 60 years of age or older and live in an area that offers either program to apply. Both programs have income limits. For more information, use the USDA's state contacts list.

Pros of Government Food Programs

• Provides nutritious food at no cost
• Improves dietary intake for vulnerable populations
• Reduces food insecurity for children
• Reduces medical costs for adults, children, and older adults

Cons of Government Food Programs

• May impose potential social stigma for recipients
• Can include varying consistency and quality aross different states
• imits what products can be purchased
• Mandates work requirements, which may be difficult for adults with children

The table below lists eligibility requirements for federal food programs.

Source: U.S. Department of Agriculture

Healthcare Programs

Six major government healthcare programs provide medical coveragene for low-income and older Americans, children, veterans, and those who have recently lost their jobs.

Medicare

Medicare is a federal health insurance program primarily for those 65 and older. Medicare is commonly divided into four parts. Medicare Part A covers for inpatient hospital stays and nursing care. Medicare Part B covers doctor's visits, tests, flu shots, physical therapy, and chemotherapy. Medicare Part C, otherwise known as Medicare Advantage, is Medicare Parts A and B coverage provided by a private insurer. Medicare Part D is Medicare's prescription drug benefit program, which is an optional benefit administered by private insurance companies.

Medicare is funded through a combination of payroll taxes and participant premiums, deductibles, and copays. Employees and employers each pay a 1.45% tax on all income, making the total Medicare tax 2.9%. If individuals earn over $200,000, they pay an additional 0.9%. This tax is levied only on employees, not employers.

Medicare's resources are pooled into trust funds: the Hospital Insurance Trust Fund, which funds Part A, and the Supplemental Medical Insurance Trust Fund, which is funded by premiums and other income, and pays for Parts B and D.

If you are still working and covered by employer health insurance when you are three months away from your 65th birthday, discuss your Medicare options and requirements with your human resources department. You can also consult "How to Apply for Medicare Only" on the Social Security website.

ACA Health Insurance Marketplace

Healthcare.gov is home to the Health Insurance Marketplace, created by the Affordable Care Act (ACA), an Obama administration program designed to make affordable health insurance available to uninsured Americans. Anyone who doesn't have health insurance can obtain coverage through the Marketplace. Those who fall below certain income limits can receive subsidies that lower the cost of coverage.

The Marketplace normally has an annual enrollment period to obtain or change coverage. For 2024, open enrollment begins November 1, 2023 and runs through January 16, 2024.

Medicaid and CHIP

Medicaid and the Children's Health Insurance Program (CHIP) are related but have slightly different requirements. Medicaid is for low-income families and individuals. CHIP is for dependents under age 19 whose parents earn too much to qualify for Medicaid but not enough to pay for private health insurance coverage.

Both programs are federally funded in part and run at the state level. Each state has its own rules but must follow federal guidelines. You can apply for Medicaid and CHIP through the ACA Health Insurance Marketplace or your state Medicaid agency.

Veterans Administration Healthcare

The primary criteria to receive VA healthcare benefits are that you be a military veteran or former member of the National Guard or Reserve who served on active duty and was not dishonorably discharged. Specific eligibility depends on when you served and for how long. The rules are complicated but well explained on the VA's website.

COBRA

Health coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) is mandated by federal law for employees (and their dependents) when they lose their job or experience a reduction in work hours. One huge downside to COBRA coverage is the cost. When you lose your job, whatever amount your employer was contributing toward your health insurance goes away, and you have to pay the entire cost yourself.

Pros of Government Health Care Programs

• Improves public health
• Prevents medical bankruptcies for vulnerable populations
• Boosts the economy due to savings

Cons of Government Health Care Programs

• Increases government debt
• Has potential for abuse
• Reduces free market competition
• May require long wait times for service

State Health Department Programs

State health departments offer programs in addition to those available at the federal level. Use the USA.gov state health departments link to find out what is offered in your state, information about eligibility requirements, and how to apply.

Retirement Programs

The primary government retirement programs are Social Security for most citizens 65 and over who qualify through their work history and the Federal Employee Retirement System (FERS) for certain government employees who are not covered by Social Security.

Social Security Retirement Benefits

If you have paid into the Social Security system for at least 10 years, you can apply for Social Security retirement benefits for yourself or as a spouse if you meet the following four requirements:

• You are at least 61 years and 9 months old.
• You are not currently receiving Social Security on your work record.
• You have not already applied for benefits.
• You want benefits to start no more than four months in the future.

You can also apply for Medicare when you apply for Social Security if you are within three months of age 65.

Federal Employees Retirement System (FERS)

FERS, which replaced the Civil Service Retirement System (CSRS) in 1987, provides benefits to civilian government workers through three programs: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP).

Eligibility for FERS benefits is determined by your age and number of years of service. The CSRS and FERS planning and applying websites provide complete information depending on how close you are to retirement.

Tax Filing Assistance Programs

The Internal Revenue Service (IRS) sponsors several tax-assistance programs to make federal and, in some cases, state tax filing easier and possibly free.

Free File

If your adjusted gross income (AGI) is $73,000 or below, you can file federal, and in many cases, state returns, online at no cost. The process and what you need to have to file are all explained in this Free File infographic. You can get help choosing a product using the Free File Online Lookup Tool.

With income above $73,000, you can still use the Free File Fillable Forms tool to prepare your taxes as long as you are comfortable doing your taxes yourself and don't require assistance. The fillable forms tool lets you file electronically but does not include state forms.

VITA and TCE Tax Filing Assistance Programs

The IRS has two in-person tax assistance programs: the Volunteer Income Tax Assistance (VITA) program and the Tax Counseling for the Elderly (TCE). Both offer free tax-preparation assistance to qualified individuals. VITA generally applies to you if your income is $60,000 or less, you are disabled, or you have limited English-speaking skills. TCE is for citizens aged 60 or older.

You can find VITA and TCE program sites using either the IRS TCE/VITA locator tool or the AARP Foundation Tax-Aide site locator tool.

Financial Assistance Programs for Small Businesses

Small businesses are the beneficiaries of several long-standing government assistance loan programs, most of them originating from the Small Business Administration (SBA).

U.S. Department of Agriculture (USDA)

The USDA offers several programs aimed at all sectors of the agricultural community. Programs include farm loans, housing assistance, loans and grants for rural economic development, loans for beginning farmers and ranchers, livestock insurance, and more. Detailed information on all USDA programs, including how to apply, can be found on the USDA Grants and Loans program web page.

Small Business Lending Fund

The Small Business Lending Fund (SBLF), created as part of the Small Business Jobs Act of 2010, is a dedicated fund that provides capital to community banks and community development loan funds (CDLFs) to encourage those organizations to lend to small businesses. Frequently asked questions about this fund can be found on the U.S. Treasury Small Business Lending Fund website.

Pros of Government Business Programs

• Offer lower interest rates
• Offer favorable repayment terms
• Require less collateral
• Require low or no down payments

Cons of Government Business Programs

• May only offer small loan amount
• Imposes long approval
• Often requires personal guarantees

Watch Out for Scams

People looking for government assistance sometimes come across ads for free government grants. However, the government does not award grants to individuals. It only awards them to states, universities, and other organizations. Anyone who suggests otherwise is probably running a scam. If you receive such an offer, the Federal Trade Commission (FTC) suggests the following dos and don'ts:

• Write down the phone number.
• Register at the National Do Not Call Registry.
• File a complaint with the FTC.
• Don't give out bank account information.
• Don't pay out any money.
• Don't believe a caller or an email just because it claims to be from the government.

The Bottom Line

There are many federal and state government assistance programs available to individuals and businesses. If you need assistance, the links above will help you obtain more information about programs you may qualify for and how to apply for them.