Abstract Introduction Financial strain is common in the US and associated with substance use. We examined whether eligibility for the federal Earned Income Tax Credit (EITC), the largest US anti-poverty program, affected financial strain and drug use. Methods Using a difference-in-difference design with data from the Population Assessment on Tobacco and Health Wave 1, a nationally representative survey of US adults, we estimated short-term EITC-associated changes in past-month financial strain, cannabis use, and central nervous system (CNS) depressant use for EITC-eligible people during the EITC disbursement period. Interview timing during/outside the disbursement period was independent of individual characteristics. Results 15. 4% of adults were EITC-eligible with refunds ≥500. Unadjusted prevalences of financial strain among EITC-eligible persons were 35. 2% outside and 32. 2% during the disbursement period. Refunds were associated with significantly lower financial strain (β=-4. 5% -8. 9%, -0. 1%) versus EITC-ineligible individuals. Unadjusted prevalences of cannabis use in both periods were 10. 7% and 9. 8% in EITC-eligible versus 7. 8% and 7. 6% among EITC-ineligible; corresponding CNS depressant unadjusted prevalences were 6. 3% and 6. 6% in EITC-eligible and 4. 9% and 4. 7% among EITC-ineligible. There were no significant EITC-associated differences in drug use. Conclusion Findings support generous EITC refunds, with no evidence that financially supporting low-income people increased drug use.
Gutkind et al. (Sat,) studied this question.