Mongolia has made significant progress in reducing poverty and inequality through its social protection programs. In 2022, the country’s tax and social assistance system reduced the national poverty rate by 1.8 percentage points and lowered income inequality by nine Gini points.

However, challenges remain, with 27.8% of the population living below the poverty line. The government continues to implement policies to support vulnerable households and improve financial security.

The Child Money Program

One of Mongolia’s most impactful social assistance programs is the Child Money Program (CMP), which provides financial support to households with children. Under the program, children receive a monthly payment of MNT 100,000 (approximately $30), deposited into an account registered in their name.

The benefit helps families cover everyday expenses and provides additional financial support for children’s needs. Today, the CMP remains one of Mongolia’s most significant social protection measures. According to a 2025 World Bank Commitment to Equity assessment, direct transfers reduce Mongolia’s poverty rate by 14.1 percentage points, with the CMP accounting for more than half of that impact, highlighting its important role in supporting vulnerable households.

The Food Support Program

Another important part of Mongolia’s social protection system is the Food Support Program (FSP), which assists low-income households. The program is particularly effective at reaching the country’s poorest populations. Although the FSP operates on a smaller scale and provides more limited benefits than some other social assistance programs, it plays an important role in ensuring support reaches those most in need.

In 2020, food stamps benefited 240,500 Mongolians, including more than 118,000 children. Women and girls made up 53% of recipients.

After revisions in 2025, the program more specifically targets those with the most urgent needs, and monthly support for low-income households, especially those with children, has increased. By targeting vulnerable households, the program helps strengthen financial security and the country’s overall efforts for poverty reduction in Mongolia.

Current Poverty Reduction Efforts

In March 2026, Mongolia launched the National Initiative to Support Household Employment and Reduce Poverty, a program designed to help low-income households achieve financial stability by addressing issues such as limited access to education, low labor force participation and poor health and living conditions. This will be done through microloans, support for agricultural production, new contributors to social insurance and other targeted services. The government is working with the Asian Development Bank (ADB) to reach 5,000 low-income households in 2026.

By increasing employment opportunities and providing targeted assistance to vulnerable populations, the initiative seeks to improve household incomes and independence. These efforts reflect Mongolia’s commitment to strengthening financial security and reducing poverty across the country.

Looking Ahead

While poverty remains a challenge, Mongolia’s social protection programs continue to provide essential support to vulnerable households. Through initiatives that strengthen financial security and opportunity, these efforts are helping to advance poverty reduction in Mongolia and build greater economic resilience for families across the country

– Michelle Kurniali

Michelle is based in Dallas, TX, USA and focuses on Good News for The Borgen Project.

Photo: Flickr