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What is a means-tested program?

Economics

What is a means-tested program?

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There are two types of government programs: means-tested and universal. As the name indicates, universal programs apply to every citizen in the system. The other option is a means-tested program, in which the program ONLY applies to those who have tested positive for an indication that the citizen's income is too low to cover all the expenses related to existence and health. An example of a means-tested program is when the costs for attending post-secondary schools, like colleges, universities, or technical programs, can be significantly reduced for low-income families, leveling the educational playing field.