How families of children with severe disabilities choose to allocate a cash subsidy.

This study examines how families raising children with severe developmental disabilities use a cash subsidy. Eighty-one families were interviewed prior to receiving the $225 monthly subsidy and again 1 year later. Families reported no change in the number of services they used, nor did they significantly increase the amount spent on services. Although families did not spend significantly more on purchases in the month prior to each interview, there was a significant increase in the amount spent on major purchases made in the year after receipt of the subsidy. The pattern and amount of expenditures are described. Lower income families reported the subsidy as significantly more helpful than higher income families. The implications of the findings for social policy are discussed and recommendations are made.