Means-tested refers to a type of financial assessment used to determine eligibility for government benefits or services based on an individual's or family's income and financial resources. Programs or benefits that are means-tested are designed to provide support specifically to those who can demonstrate a need due to low income or limited financial assets, thereby targeting assistance to those who require it most.
Means-tested meaning with examples
- The government's means-tested welfare program ensures that only families with a household income under a certain threshold receive financial assistance, helping to direct resources to those in genuine need.
- Many educational grants are means-tested, requiring applicants to provide detailed financial information to ensure that funding goes to students from lower-income backgrounds seeking higher education.
- During the economic crisis, the city introduced a means-tested food pantry program to assist struggling families, where eligibility depended on their monthly income and expenses.
- Nonprofits often use means-tested criteria when allocating aid, so they can prioritize resources for low-income individuals, emphasizing strategic support in critical areas such as housing and healthcare.
- The means-tested nature of the housing voucher program means that only those who meet specific income guidelines can qualify, making it crucial for eligible applicants to provide accurate financial documentation.