Second Chance Stipends

The transition from incarceration to community reintegration is a finite period of heightened economic vulnerability. Financial strain, legal fees, and barriers to housing, employment, and public benefits increase the risk of recidivism for the individual and can create financial challenges for whole families.

This pilot provides 12 months of direct cash to reduce financial strain during this critical transition period while studying implementation and impact.

It is modeled after a pilot in Gainesville, Florida that provided 12 months of cash and saw reduced recidivism and improved wellbeing among formerly incarcerated adults.

In a randomized pilot, participants receiving cash support saw a 12% additional reduction in the odds of recidivism compared to the control group, alongside improved wellbeing.

Individuals are eligible if they are 18 or older and were released from Nebraska state prison facilities between April 1, 2026 and September 1, 2026. Individuals with a recent conviction of a homicide or felony sex offense are excluded from participation.

The pilot includes 200 participants in the treatment group and 250 participants in the control group as part of a Randomized Controlled Trial (RCT).

Participants in the treatment group receive $1,000 in the first month, followed by $750 per month for the next 11 months, totaling $9,250 for the year.

Participants in the control group receive $75 for each completed survey as part of the study design.

One year. Individuals reentering society face a period of acute financial risk immediately following release. Court-ordered fines and fees accumulate, while systemic exclusion from labor and housing markets restricts pathways to successful reintegration. Employment opportunities are unstable and housing options are limited, requiring individuals to navigate supervision requirements while struggling to meet basic needs.

Under these conditions, short-term financial stability may determine whether individuals successfully reintegrate into the community or recidivate.

There is no formal transition period after payments end. Participants are informed in advance of the conclusion of payments and connected to resources to support their transition.

No, the Second Chance Stipends provide direct cash with no spending requirements. Participants decide how to use the funds based on their own needs and circumstances — whether that is covering housing costs, transportation, food, or other essentials. This flexibility is intentional. Research from cash pilots across the country consistently shows that people use direct cash responsibly and in ways that reflect their most pressing priorities.

Community Financial Resources (CFR) is the disbursement partner for the pilot. CFR distributes funds to participants using a reloadable debit card. Funds will be deposited monthly. CFR is not a bank; they work with Dash Solutions to hold and deposit funds.

Participants will contact Dash Solutions for any cardholder services-related questions, such as getting a replacement card.

No. Participants in the treatment group will receive $1,000 in the first month, followed by $750 per month for the next 11 months.

Participants in the control group receive $75 for each completed survey as part of the study design. Payments are made monthly, not as a lump sum.

Individuals exiting prison are most vulnerable to recidivism during the initial period after release. Financial strain during this time contributes to technical violations and reincarceration. In recent years, five times as many individuals were reincarcerated for technical violations while on parole, as compared to a new felony conviction, proving how financial instability, rather than new criminal behavior, often drives recidivism.

This pilot addresses the economic and structural barriers that formerly incarcerated adults face during reentry. Many individuals struggle to find and maintain employment, secure stable housing, and access reliable transportation.

Limited access to telephone and internet services further complicates job searches and compliance with supervision requirements. Access to public benefits is often restricted, and individuals frequently bear financial costs associated with required programs and classes. These challenges are intensified in rural areas, where resources are scarce and individuals may need to travel long distances to reach required job centers or services.

The Second Chance Stipends pilot provides direct monthly cash payments ($1,000 in the first month, followed by $750 per month for the next 11 months) to address the financial barriers that increase the risk of technical violations and recidivism, such as legal fees, transportation costs, and limited access to stable employment and housing. Rather than layer on a new set of requirements to navigate as many other public benefits can do, it offers individuals time-limited financial support during the most vulnerable period after release. The pilot is also structured as a randomized controlled trial to rigorously evaluate outcomes and inform future scaling decisions.

The Second Chance Stipends is designed as a one-year intervention during the most vulnerable phase of reentry. Payments conclude after 12 months.

The pilot is structured as a time-limited support paired with a rigorous randomized controlled trial to evaluate outcomes such as recidivism, earnings, and economic stability. Findings from this first experiment will inform whether and how the pilot could be scaled or adapted in a future phase.

Outside of the federal expanded Child Tax Credit during the pandemic, 2025 is the first year that direct cash interventions are coming to the state of Nebraska. There is a pilot right now called Bridge Project which provides cash biweekly to 350 pregnant mothers in Omaha who are over 18 and make less than $39,000 annually. Bridge provides low-income mothers with cash on a biweekly basis during pregnancy, birth, and the earliest days of their babies’ lives to support healthy development, avoid adverse childhood experiences, and to break intergenerational cycles of poverty.

Across multiple cities and states, cash-based reentry pilots, including the Returning Citizens Stimulus (RCS) and the Chicago Future Fund, have shown fewer parole violations, improved financial stability, and promising signs of reduced reincarceration. The evidence consistently suggests that targeted financial support during reentry can improve individual outcomes while advancing community safety.

Evidence from a similar pilot in Gainesville, Florida demonstrated improved wellbeing outcomes and reduced recidivism among participants receiving 12 months of cash transfers. In a randomized pilot, participants receiving cash support saw a 12% additional reduction in the odds of recidivism compared to the control group, alongside improved wellbeing. This pilot builds on those learnings and focuses on understanding implementation to inform future expansion and sustainability.

In Flint, Michigan, the recent $7,500 RxKids program, which provides a monthly check to every pregnant woman in the city, has shown significant economic and health benefits. Among participants, 80% reported feeling more financially secure, and 72% saw improvements in their health and their babies’ health. The intervention also led to a 91% decrease in evictions, a massive improvement in ensuring families stay housed.

And the nation’s largest cash experiment happened when the federal government expanded the Child Tax Credit during the COVID-19 pandemic. When families had these expanded checks, their economic wellbeing improved and childhood poverty was cut in half.

University of Pennsylvania’s Center for Guaranteed Income Research (CGIR) will conduct a Randomized Controlled Trial. The study will evaluate implementation and impact on recidivism. The research will assess outcomes including earnings and potential return on investment through tax contributions or reduced reliance on means-tested benefits.

The Center for Guaranteed Income Research (CGIR) is running the Second Chance Stipends pilot in partnership with local Nebraska organizations who focus on reentry.

People who have served their time and are being released between April 1, 2026 and September 1, 2026 will receive an invitation from a community partner to apply for the program. After applying, applications will be randomly sorted to determine who is selected to participate.

If a person becomes reincarcerated during their time in the pilot, they may designate a next of kin or trusted person to receive payments on their behalf.

No.

The goal of Second Chance Stipends is to reduce the risk of recidivism due to financial insecurity. Recidivism may be secondary to violations of probation or parole, where not being able to pay fines and fees or failing to attend a meeting due to transportation issues leads to a reincarceration. Additionally, financial insecurity can contribute to certain forms of criminalized behavior, including many property and drug-related offenses, making economic support a potentially important component of successful reentry.

This pilot thus focuses on individuals whose prior justice involvement aligns most directly with the program’s theory of change regarding financial insecurity and successful community reintegration.

Learn more.