What Is Cash Assistance—and Why It Should Shape the Future of Emergency Response

In conversation with Bjorn Betzler, Senior Advisor for Cash Assistance, U.S. Emergencies

What is Cash Assistance, Really?

Cash assistance is not about handing out small gift cards or tiny payments that barely cover groceries. At its best, it’s a targeted, adequately sized financial transfer that helps families meet their most urgent needs during a crisis.

Both our experience and external research point to the same conclusion: a single cash transfer, delivered quickly to families who need it most, has the greatest impact.

“So how do we decide the right amount? It differs in every emergency,” Bjorn explains. “In the U.S., we have granular market data showing what things cost by county or even zip code. We use that information, supported by AI and always validated through community engagement, to make sure we’re getting it right.”

That process may sound complex—but it happens fast, often within hours of a disaster. And for it to be successful, local partnerships are key.

“We’re committed to being community-led,” Bjorn adds. “Our cash assistance is a powerful example of how a global humanitarian organization works alongside hyper-local partners—to co-design programs, set transfer values and identify families most at risk of falling through the cracks.”

After the 2025 L.A wildfires, local partners raised community concerns about back-to-school costs for displaced families. When data confirmed Los Angeles had the highest costs in the country—30% increase from the previous year—we designed a targeted program to help children return to school with confidence.

Beyond "Cash" Lies the Power of Choice

The dignity of choice is a cornerstone of Save the Children’s emergency cash assistance.

We carefully target support to families facing the greatest challenges and ensure that it meets their needs. Even in times of crisis, they consistently share feedback about how these funds help them recover.

“This is how we know the money is overwhelmingly spent on essentials,” Bjorn notes. “From food and groceries, to education, housing and healthcare, families use cash assistance to stabilize their lives.”

In many cases, families reported that cash assistance prevented eviction by covering rent at a critical moment. Keeping families in their homes reduces disruption for children and helps communities recover faster.

When Americans are asked how they prefer to be supported during crisis, the answer is clear: cash. Our disaster response data reaffirms this—92% of people favor cash assistance.

While in-kind donations are well intended, they often are a logistics nightmare—transporting, sorting and storing goods takes time and money. In the U.S, where markets continue to function even after disasters, cash is typically the most efficient way to help families purchase what they need close to home.

“Local spending helps entire communities recover by supporting nearby businesses and jobs,” Bjorn shares. “Every dollar of cash assistance is estimated to generate between $1.50 and $3 in community-level economic activity.”

Myth-Busting Cash Assistance: "What if it's misused?"

One of the most common myths around cash assistance is the fear that it will be squandered.

“If we give cash to a family that doesn't have enough money to make ends meet, research shows that they do a phenomenal job maximizing every penny. Nobody is as good at budgeting as somebody providing for a family that doesn’t have enough to go around.”

The reality is that cash assistance is one of the most studied interventions in humanitarian aid, precisely because of these misconceptions.

“It’s understandable that donors want reassurance,” Bjorn notes. “But the data is rock solid. Cash assistance is the most effective, least wasteful, and arguably the biggest innovation in humanitarian support in decades.”

So why does controversy persist?

Part of the challenge is visibility. Nonprofits have not always effectively communicated about cash programs, allowing misunderstandings to linger. Changing that requires a shift not just in evidence, but in mindset.

“Organizations need to take a bolder stance—sharing impact evidence transparently and clearly explaining why this is the most efficient and dignified way to provide emergency assistance to families.”

Innovation in Emergency Response

When crisis strikes, speed doesn’t just matter—it’s lifesaving.

“In emergency response in the U.S, no other organization gets cash assistance into the hands of families faster than Save the Children,” Bjorn says.

With a lean emergency response team and limited resources, we leverage technology to respond nationwide—from the L.A wildfires and the Washington floods last year, to hurricanes, tornadoes and beyond.

A key partner is AidKit, a technology platform that enables secure, digital cash delivery with built‑in fraud prevention, real‑time verification, and ongoing monitoring. Together, we have built a system to ensure assistance reaches families quickly, safely, and in the ways they prefer.

Despite these innovations, funding constraints remain a growing challenge to meet the scale of need during disasters.

“The federal government is stepping back in parts of the emergency response space, leaving a larger gap for philanthropic and private support. At the same time, billion-dollar disasters are happening more often,” Bjorn reflects. “Responders must use resources efficiently, focusing on those most in need while minimizing waste.”

In this context, cash assistance isn’t just effective—it’s necessary.

Emergency Preparedness Is the End Goal

Cash assistance can also strengthen preparedness before disaster strikes.

Take wildfire season. Preparation protects lives, homes and livelihoods. Save the Children partners with national and local organizations to map high‑risk areas and forecast resource needs, ensuring support can be deployed immediately when needed.

“Our baseline is to respond anywhere in the country within 72 hours. We’ll continue pushing the limits of what is possible because we know every minute matters to these families,” Bjorn says.

Since 2025, Save the Children co-leads the national coalition of cash assistance actors alongside CORE Response —working to improve systems, formalize coordination, eliminate duplication and deepen public trust in cash assistance through radical transparency and accountability.

“Our goal is nothing short of systemic change,” Bjorn concludes. “Emergency resources are limited, pushing us all to be more cost-effective. Evidence confirms what families have been telling us for decades: the best way to deliver emergency relief support is through cash assistance.”

When disaster strikes, families don’t need someone else to decide for them. They need speed, trust, and the freedom to drive their own recovery. Cash assistance delivers all three.