Financial setbacks can be unpredictable, making it difficult for one to pay their bills on time and tackle debt. In such situations, it is easy to fall into a debt trap by borrowing money to repay another lender. But, this only pushes one deeper into financial trouble. Fortunately, the government offers financial hardship assistance programs, which temporarily provide monetary aid to those with financial problems, helping them get back on their feet.

Financial hardship assistance

This is a type of monetary aid the government provides to support those dealing with financial challenges. For example, certain financial hardship programs are designed to help economically disadvantaged families and those who do not have a job due to factors beyond their control.

Eligibility criteria

One has to meet strict eligibility criteria for receiving financial hardship aid, as the level of assistance offered can vary based on the requirements and the overall situation. These programs are typically federally funded but run by state governments, so while the basic criteria may be the same, some eligibility requirements may differ. 

1. Unemployment due to factors beyond control
If one does not have a source of income for reasons beyond their control, they may be eligible for unemployment insurance.

2. Temporary financial hardship
The government offers a financial hardship assistance program called Temporary Assistance for Needy Families (TANF). The program assists families by giving them food, housing, childcare, energy, and more. Such families will each receive a TANF card if their total household income has dropped below a specified level and they cannot afford essentials at present. It is important to note that states and tribal governments may have different names for the TANF program.

3. Homelessness or temporary inability to pay rent
Shelter is a basic right, but sometimes, circumstances beyond one’s control can threaten it. In such cases, the government offers financial help through emergency housing assistance. This helps one find temporary housing at a highly subsidized rate or for free. Alternatively, it may provide temporary help by paying the house rent through its rental assistance program.

4. Urgent need for repairs or renovations
The government also offers home repair and improvement assistance for those who need to renovate or repair their homes but cannot afford the expenses. The eligibility criteria here include factors such as the recipient’s income level and age and the type and location of the property. This type of financial hardship assistance program also caters to certain special groups, such as rural residents, veterans, and service members.

5. Temporary inability to cover utility bills
Sometimes, due to a sudden financial hardship, one may be unable to pay their utility bills on time. In such cases, the government offers temporary financial assistance for heating, cooling, weatherization, etc. In general, the eligibility criteria for receiving such assistance can depend on the recipient’s age, the current weather in their area, their utility provider, and if they have a disability. However, each state may have a different policy for checking eligibility.

6. Inability to afford proper meals
If a person or family cannot afford their daily meals because of a financial issue, the government helps them in various ways. First, it offers food stamps to those with low incomes. Then, through its Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) initiative, the government provides families and children with nutritious food, nutrition-based counseling, and social service referrals. Lastly, the government offers food assistance for underprivileged older adults and children at schools or childcare centers.

Tips for applying
The application rules may vary for each state. That’s because even though financial hardship assistance programs are federally funded, each state manages them independently. So, the best bet is to check the state government’s guidelines and procedures before applying. State governments generally provide toll-free numbers or email addresses to help one get financial hardship assistance. One can even use the email address to share details regarding their financial situation and provide relevant documentation. 

1. Check the rules and requirements
The eligibility criteria for each financial hardship assistance program can be different and prone to changes. So, one should double-check the terms and guidelines put forth by each state and follow them carefully.

2. Determine requirements
Sometimes, financial challenges make it difficult to pay for multiple utilities and essentials. In such cases, one should determine the most urgent need and then get financial assistance to fulfill that requirement.

3. Provide relevant documentation and details
To be eligible for financial hardship assistance, one must present all the necessary documents, like proof of age, income level, residence, and more. One should look up which documents are required for each assistance program and have them at hand while filling out the application form.