Dollars in Our Pockets: The Evolution of Direct-to-Beneficiary Programs in America

These programs aim to deliver critical resources efficiently, but they often struggle not only to reach the right groups but also to make it easy and worthwhile for them to use the benefits. The COVID-19 pandemic brought these challenges into sharp relief, exposing both the strengths of our existing systems and the gaps that need addressing. While governments adapted quickly in response, it also became clear that we need better tools and a more flexible approach to ensure benefits reach people effectively.

Past Challenges and Opportunities for Growth

Take the Paycheck Protection Program (PPP), for example. During the pandemic, the PPP deployed $800 billion in loans to help small businesses. The intent was solid, but the urgency created vulnerabilities—up to $80 billion was lost to fraud. The core issue wasn't the goal; it was about balancing speed with proper validation. This experience highlights the need for better approaches to rapidly deploying support without sacrificing accuracy.

Another instance is the Section 8 housing voucher program, which aims to assist low-income families in securing housing. Many families wait years to get off the waitlist—three years, in some cases—only to face a limited two-month window to find a home before the voucher expires. The short timeframe, coupled with landlord refusals, means that more vouchers are left unused. Between 2018 and 2022, the percentage of households unable to use their vouchers rose from 35% to 45%, pointing to a need for systemic changes to make the process more user-friendly and effective.

A Balanced Path Forward: Leveraging Technology for Better Outcomes

Boston offers a promising example of how to address inefficiencies in the voucher system, achieving an 88% success rate—far above the national average. By assigning a dedicated housing navigator to each recipient, extending search periods, and partnering with local service providers, Boston ensures more families succeed in using their vouchers. This model shows how targeted assistance can lead to better outcomes, even in competitive rental markets.

Similarly, the Civic Assist program, developed by Oracle and Mastercard, made an impact early in the pandemic. Los Angeles deployed Civic Assist in just two weeks, successfully distributing over $36 million in assistance to more than 100,000 residents from around 37,000 families. This kind of rapid response highlights the potential of integrating technology to deliver emergency aid quickly and effectively.

The Kansas Education Enrichment Program (KEEP) also illustrates how technology can balance speed and accuracy. KEEP launched to help families access educational resources, using existing data like Medicaid enrollment to prequalify applicants. Within 60 days, the program was up and running, distributing nearly $40 million in grants to almost 40,000 students. Together with our partner, Witt O’Brien’s | Ambipar Response, we ensured that funds were distributed efficiently, preventing fraud through verified identity and secure digital wallets.

These examples demonstrate how technology and targeted support can solve many of the challenges exposed by the pandemic. By integrating digital tools and personalized assistance, we can disburse funds quickly and securely without compromising on either. Governments should embrace collaboration with private sector partners, focusing on their core strengths. By allowing the private sector to handle technological complexities, governments can better serve communities with increased efficiency and trust.

Moving Toward Personalization in D2B Programs

The evolution of D2B programs isn’t just about efficiency—it’s about personalization. Unlike one-size-fits-all approaches, modern programs like KEEP provide flexibility, allowing families to use grants in ways that suit their needs, whether for tutoring, art lessons, or other educational resources. This personalization leads to more meaningful outcomes.

The evolution of programs like SNAP further highlights the benefits of modernization. Moving from physical vouchers to Electronic Benefit Transfer (EBT) cards allowed recipients greater flexibility while also reducing fraud. This transformation demonstrates how the right technology can enhance access and impact while keeping systems secure.

Reflecting on Past Efforts with a Forward-Looking Approach

The pandemic was an extraordinary event that required quick, decisive action. Instead of critiquing past decisions, we should use this experience to build stronger, more resilient systems. Private sector partnerships played a key role in making grant distribution both rapid and reliable during this crisis, proving that, with the right approach, we can achieve both speed and accuracy.

Programs like Civic Assist, KEEP, and Boston’s voucher initiative illustrate the benefits of secure digital tools paired with targeted support. These approaches provide the scalability, accountability, and efficiency that modern D2B programs need.

Conclusion: Building a Better Future for D2B Programs

The future of direct-to-beneficiary programs lies in embracing the lessons of the past while leveraging the best of modern technology. The COVID-19 pandemic showed us what's possible with quick response, but it also underscored the importance of building systems that combine speed and accuracy. Programs like KEEP, Civic Assist, and Boston’s housing support model show that this balance can be achieved.

As program administrators and policymakers, we need to continue innovating, learning from our experiences, and using the best tools available to fulfill our commitments to those we serve. Our goal is simple: to put dollars in pockets—and opportunities in hands—quickly, securely, and in ways that help individuals and communities thrive. The challenges of COVID-19 serve as a reminder that while crises demand rapid action, they also offer the chance for lasting, positive changes in how we provide support to those who need it most.

	Jacob Orrin COO and Cofounder, Merit Co-author
	Matthew Hanson Managing Director, Grants & Policy, Witt O’Brien’s | Ambipar Response  Co-author