The Earned Income Tax Credit and short-term changes in financial strain and drug use.

Introduction: Financial strain is common in the United States 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 Adult Survey, 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: Approximately 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 ( Conclusion: Findings support generous EITC refunds, with no evidence that financially supporting low-income people increased drug use.