AI-Powered Cash Relief: Direct Support for Hurricane-Impacted Households

Nearly 1,000 households impacted by Hurricanes Helene and Milton in North Carolina and Florida will receive cash relief payments of up to $1,500 this week in an innovative approach to disaster aid led by the nonprofit GiveDirectly. Using AI to identify hardest-hit areas, this model provides a unique way to assist those in need. GiveDirectly, partnering with Google-developed AI tools will distribute $1,000 to selected households on Friday. Recipients were invited to enroll via a smartphone app that manages SNAP and government benefits, and funds will be transferred through the app's debit card system.

Laura Keen, senior program manager at GiveDirectly, emphasized that this approach reduces the burden on applicants while giving them the autonomy to address their most urgent needs. "There is an elegance to cash that allows individuals in these circumstances to resolve their unique needs," Keen noted, adding that rapid access to funds can also help families avoid high-interest loans.

AI is being used to send some households impacted by Helene and Milton $1,000 cash relief payments | The Seattle Times

GiveDirectly has previously provided cash assistance in disaster relief, including after Hurricanes Harvey and Maria, though its earlier process required in-person enrollment. Today, using Google's SKAI machine learning, they can identify poverty-stricken, storm-damaged areas within days. Propel, an electronic benefits transfer tool, further simplifies enrollment without documentation.

Despite its benefits, this approach has limitations. Not all vulnerable households are captured, as the model targets areas with visible property damage and individuals already enrolled in government benefits programs. Those with smartphone access may also be excluded, while challenges like power outages further hinder access. Keen highlighted the need for hybrid remote and in-person options and acknowledged that funding is crucial in scaling this assistance. GiveDirectly has raised $1.2 million for this initiative, with $300,000 from the Conrad N. Hilton Foundation.

GiveDirectly's cash relief model may inspire other disaster response efforts and influence FEMA's approach. FEMA recently increased its Serious Needs Assistance payments to $770, with over 693,000 households impacted by Helene and Milton receiving aid totaling $522 million. However, FEMA's application requirement remains a barrier for some.

Chris Smith, formerly of FEMA's Individual Assistance program, noted that private initiatives like GiveDirectly allow more flexibility in disaster response. The United States has experimented with cash assistance programs, such as the 2021 child tax credit expansion, which reduced child poverty by nearly half, though temporarily. Research from the Center for Guaranteed Income Research reveals that recipients of guaranteed income programs primarily spend funds on essentials like food and transportation.

One-time cash payments can provide immediate relief, but evidence suggests sustained support can lead to lasting recovery. In past disasters like the 2016 Tennessee wildfires, donors like Dolly Parton and, more recently, Oprah Winfrey and Dwayne Johnson for the Maui wildfires have funded ongoing payments to aid recovery. Keen stated that GiveDirectly would adopt a similar approach if funding permits, helping survivors rebuild and bolster resilience against future events.