Moms are getting $7,500 for having a baby in Michigan—here’s how it’s transforming lives

RX kids: A new mom holding her baby
Canva/Motherly

What if we just paid women when they have babies? A revolutionary new program is testing exactly that—and it’s already changing lives.

Rx Kids is a first-of-its-kind initiative in Flint, Michigan that provides $7,500 in cash to mothers: $1,500 during pregnancy and $500 per month for the first year of their baby’s life. No hoops to jump through, no strings attached. Just money when moms need it most.

A groundbreaking initiative in Flint

Anyone who has had a baby has experienced the financial crisis of motherhood in America—from sky-high out-of-pocket costs for pregnancy to unpaid maternity leave, unaffordable childcare and the motherhood penalty. All of these stressors compound at the most vulnerable time in someone’s entire life: when they bring a brand-new baby into the world.

“Rx Kids is something that has never been done before,” said Dr. Mona Hanna-Attisha, pediatrician and co-director of Rx Kids, during an interview on the Created Equal podcast. “It is a citywide effort to disrupt poverty and improve health equity. Flint is the poorest city in the state. Our child poverty rates are about three times state and national averages, and families are most poor when the babies are just born. Right before birth and in that first year of life, poverty spikes.”

“And for me as a pediatrician, that is maddening because that is the same time that child development is the most critical,” Hanna-Attisha said on the podcast. “Babies’ brains actually double in size in that first year of life, and that’s when families are the poorest. It’s so frustrating that we just band-aid so many problems that are associated with poverty and that we don’t do something preventative.”

“I was tired of shrugging my shoulders, and I was tired of band-aiding,” Hanna-Attisha explains. “We do big things. We do hard things. Why not prescribe something that can lift our families out of poverty during this most critical time of child development? That’s how the idea was born.“

It’s a radical idea: directly addressing the financial strain that comes with having a baby, a time when families are at their most vulnerable economically. And it’s not just about surviving those early months—it’s about giving babies the strongest possible start in life.

Related: They asked me to ‘prepay’ for my baby: The rising cost of maternity care no one prepares you for

Why pay moms?

Motherhood in the U.S. can feel like a financial free fall.

  • No paid leave: The U.S. is the only industrialized country without guaranteed paid parental leave.

  • Sky-high childcare costs: For many families, childcare is as expensive as college tuition.

  • The hidden costs of parenting: Diapers, car seats, strollers, medical bills—it all adds up fast.

The result of this financial strain? Stress, missed opportunities for bonding with baby, and increased health risks for both moms and babies.

What $7,500 does for moms

Here’s how this simple cash stipend is reshaping the postpartum experience:

  1. Eases Financial Stress: Moms can cover essentials like diapers, car seats, and medical expenses without the constant worry of making ends meet.

  2. Improves Health Outcomes: With fewer financial barriers, families are better able to access healthy food, medical care, and other necessities.

  3. Supports Development: Babies thrive when parents have the resources to focus on their needs.

  4. Enables Paid Time Off: In a country with no universal paid leave, this stipend acts as a lifeline, giving moms time to recover and bond.

  5. Reduces Long-Term Poverty: Direct cash payments help break the cycle of poverty, improving outcomes for families far beyond infancy.

Related: Too many U.S. moms are in debt from giving birth. They deserve better

A bold new model for supporting mothers

This approach is about reimagining how we support motherhood in America. Instead of endless debates over policies that take years to implement, Rx Kids is making a direct, immediate impact. The anticipated reach of Rx Kids within the City of Flint during the intervention period (2024-2028) is over 6,000 families.

And it’s gaining traction. After launching in Flint, Michigan, the program has expanded with state and philanthropic funding, with the potential to reach other communities in the future.

It’s time to stop thinking about investing in babies and mothers as an expense; extensive research has shown that these kinds of programs have a positive economic return on investment by reducing future healthcare costs and increasing long term economic activity.

The big takeaway? Paying women when they have babies isn’t just compassionate—it’s effective. It addresses the root causes of maternal and infant poverty and ensures that every family, regardless of income, can focus on what matters most: thriving in those early, irreplaceable months.

If motherhood is the backbone of society, it’s time we start acting like it. Programs like Rx Kids are a glimpse of what could happen when we finally give moms the support they deserve.