Populations adversely affected by climatic shocks and complex emergencies often require support to meet their basic needs, including food, household items, rent payments, transportation, and safe drinking water. When local markets are functioning and goods are available in sufficient quantity and quality, providing cash allows people the flexibility and dignity to determine how best to meet their needs. Distributing cash also supports local markets and is often faster and more efficient than providing in-kind commodities. Accordingly, USAID’s Bureau for Humanitarian Assistance (USAID/BHA) supports multipurpose cash assistance (MPCA) activities in many disaster -affected communities. Cash distributions can be provided once or on a recurring basis to support acute needs. The amount of the cash transfer is based upon the gap between the cost of households’ basic needs and their own income, which is identified by humanitarian partners in consultation with affected households. Ultimately, participating households decide how to use the money according to their most urgent needs.
USAID/BHA provided MPCA to help vulnerable households flexibly respond to their immediate needs in nearly 40 contexts in FY 2023.
