Keeping the Lights On

How cash incentives are changing the lives of inadequately-housed students

By Jenny Ramo

In New Mexico, more than 10,000 students each year experience homelessness or live in inadequate housing; they are struggling daily with barriers that make education feel like an unattainable goal. These young people often lack basic necessities: transportation to school, electricity for lights and Internet to do homework, or even a safe and quiet place to get a good night’s sleep.

Recognizing the urgent need to address these challenges, we at New Mexico Appleseed asked this question: What if the most effective thing we can do for these students is to give them money? So we launched a groundbreaking program that uses conditional cash transfers to help stabilize families and support students through high school graduation.

The results were extraordinary: A 93% graduation rate for participants, far exceeding the national average of 64% for homeless students. This innovative program has not only transformed individual lives but also demonstrated how direct financial support can address the root causes of housing instability and educational disengagement.

Every child deserves the opportunity to graduate and pursue their dreams, regardless of their housing situation. This program has shown that with the right support, we can remove barriers and help students succeed.

For many students in New Mexico, homelessness and inadequate housing are a constant source of disruption. More than 80% of children and youth who meet the federal definition of homelessness under educational law live in overcrowded homes, substandard housing, or residences without essential utilities like running water or electricity. These conditions create overwhelming obstacles to education, from inconsistent school attendance to the inability to complete homework and academic credit losses that simply are not recoverable.

It is nearly impossible for a child to succeed in school if their basic needs aren’t met. Stable housing is foundational to educational success. Our literature and community deep-dive research confirmed that financial instability is at the core of housing insecurity and its ripple effects on students.

In the 2020–21 school year, New Mexico Appleseed launched a pilot program (now called the Guaranteed Payment For Attendance, or GPA program) to address these challenges. Working with 53 students from the Cuba Independent and West Las Vegas School Districts, the initiative provided monthly cash stipends of $500 for up to eight months. Families received this financial support on the condition that students met specific criteria, including:

• Weekly attendance at 1–2 hours of tutoring
• Weekly check-ins to address academic and social-emotional issues
• Maintaining 90% school attendance
• Completing 90% of their schoolwork

This approach was designed to address immediate financial needs while fostering long-term educational engagement. To ensure fairness, the program also included a compassionate exception, allowing flexibility for students facing extraordinary barriers such as emergencies or health crises. We didn’t want them to lose the cash for the very reason they were eligible—inability to get to school because of situations surrounding their housing or poverty itself.

The GPA program achieved remarkable success, with participating students attaining a 93% graduation rate. This far surpassed the national average for homeless students, highlighting the program’s effectiveness in stabilizing families and keeping students on track academically.

One participant shared, “The cash helped my family keep the lights on and pay for gas so I could get to school every day. It was the first time in years that I felt like I had a chance to succeed.”

Teachers and administrators also observed significant improvements in students’ attendance, engagement, and mental well-being. One educator remarked, “When students don’t have to worry about basic needs, they can focus on learning. This program gave them that opportunity.”

Among the students who benefited from the program was a junior who, during her freshman year, had lived in a domestic violence shelter and faced significant financial hardships that affected her ability to attend school and succeed academically. Through New Mexico Appleseed’s program, she received the support she needed to stabilize her situation and stay in school. Her story is a testament to how targeted financial assistance can create a path to success even in the most challenging circumstances.

Buoyed by the success of the pilot program, New Mexico Appleseed is preparing to expand the GPA initiative to reach 1,500 students statewide. We plan to advocate for this expansion during the 2025 legislative session, working with policymakers, educators, and community leaders to secure funding and build on the program’s proven model.

The expanded program will continue to provide cash transfers alongside academic tutoring, mental health counseling, and mentorship, ensuring students have the resources they need to graduate and build stable futures.

New Mexico Appleseed’s conditional cash transfer program offers a powerful blueprint for addressing housing insecurity and educational inequities. By focusing on the root causes of instability—financial hardship—the initiative has created a model that is both effective and scalable.

The 93% graduation rate achieved by participants underscores the transformative potential of cash transfers when combined with holistic support services. This program is more than a safety net—it’s a launching pad for success.

As New Mexico Appleseed works to expand the program, it offers a hopeful vision for the future: A state where every student has the stability, resources, and support they need to thrive. With bold leadership and continued investment, this vision can become a reality, illuminating the path forward for students and families across New Mexico.

For more information or to donate to New Mexico Appleseed, visit nmappleseed.org.

Jenny Ramo is a mother, lawyer, low-key troublemaker, and the founder and executive director of New Mexico Appleseed.