One in five Americans is financially “insecure,” meaning they recently experienced a significant loss in income without an adequate financial cushion.

Because of outdated and discriminatory laws, lesbian, gay, bisexual, and transgender people face even greater economic insecurity than their non-LGBT counterparts simply because of who they are and whom they love.

But a new resource has been released to help end unfair financial penalties that LGBT Americans pay.

Our partners at Movement Advancement Project, the Center for American Progress, Center for Community Change, Center for Popular Democracy, National Association of Social Workers, and the National Education Association have released a new policy report: Paying an Unfair Price: The Financial Penalty for Being LGBT in America. This report details the added financial burdens faced by LGBT Americans because of anti-LGBT laws, and outlines policy recommendations for helping strengthen economic security for LGBT individuals.

Click here to download Paying an Unfair Price: The Financial Penalty for Being LGBT in America.

Paying an Unfair Price: The Financial Penalty for Being LGBT in America provides a look at how anti-LGBT laws contribute to a devastating cycle of poverty and create unfair financial penalties for LGBT Americans in the form of higher taxes, reduced wages and Social Security income, increased healthcare costs, and more.

Although LGBT people are active in the labor force - 82% of same-sex couples work versus 69% of married opposite-sex couples - they face greater rates of poverty and rely more heavily on public assistance for themselves and for their children.

• A study showed that 20.7% of LGBT people make less than $12,000 per year, compared to 17% of non-LGBT people, and 15% of transgender people make less than $10,000 per year, compared to only 4% of the general population.
• Research shows that children in poverty are more likely to be raised by a same-sex couple, and individuals in same-sex couples are twice as likely to receive cash assistance through programs such as Temporary Assistance to Needy Families (TANF) compared to those in opposite-sex couples.

But not every LGBT person experiences the same degree of economic insecurity, as anti-LGBT laws which impact one’s ability to succeed vary from state-to-state. More than half of the states in this country are places where LGBT people lack basic legal equality and protections from discrimination at work, at school, and in other settings. This lack of legal equality has serious financial consequences for LGBT people.

• According to research, the average household income for same-sex couples raising children in states with same-sex marriage recognition is $122,522, compared to $89,474 in states lacking the freedom to marry.
• One study showed that the average poverty rate for female same-sex couples was 3.6 percentage points higher in states without employment protections compared to states with these protections.
• Anti-LGBT laws in general are likely to disproportionately hurt poor LGBT people, older LGBT people, and those who are raising children or are people of color.

The financial penalties facing LGBT people in the United States are the result of three primary failures in the law:

1. Lack of protection from discrimination means that LGBT people can be fired, denied housing, and refused medically-necessary healthcare simply because they are LGBT. The financial penalty: LGBT people can struggle to find work, make less on the job, and have higher housing and medical costs than their non-LGBT peers.
2. Refusal to recognize LGBT families means that LGBT families are denied many of the same benefits afforded to non-LGBT families when it comes to health insurance, taxes, vital safety-net programs, and retirement planning. The financial penalty: LGBT families pay more for health insurance, taxes, legal assistance, and essential protection for their families in times of crisis.
3. Failure to adequately protect LGBT students means that LGBT people and their families often face a hostile, unsafe, and unwelcoming environment in local schools, as well as discrimination in accessing financial aid and other support. The financial penalty: LGBT young people and the children of LGBT parents are more likely to perform poorly in school and to face challenges pursuing postsecondary educational opportunities. This, in turn, can reduce their earnings over time.

Paying an Unfair Price: The Financial Penalty for Being LGBT in America offers a number of recommendations for putting an end to the financial penalties that LGBT Americans face. It suggests changes that policymakers can make at all levels to prohibit discrimination against LGBT people, to give LGBT families access to the same benefits available to other families, and to make our country’s schools safe for LGBT students.

It is time to put an end to the financial penalties that LGBT Americans face simply because of who they are and whom they love.

Click here to download Paying an Unfair Price: The Financial Penalty for Being LGBT in America.