India’s welfare state offers a wide array of initiatives, including pensions, subsidized loans, school lunches, employment guarantees, food rations, and subsidized housing. Unlike other programs, subsidized housing transfers wealth, significantly influencing household decision-making across various aspects of life. It shifts psychological and behavioral outcomes related to poverty and enhances beneficiaries' sense of control and relationships. In contexts where the poor are often neglected, these changes empower beneficiaries to advocate for their interests within their communities. The study finds the greatest benefits in programs that do not require relocation and in urban areas with dynamic real estate markets. Property rights are crucial for success. The chapter finally highlights the distributional consequences of subsidized housing, suggesting both positive and negative externalities on broader communities. Overall, the findings illustrate how wealth shapes household decision-making among low-income, upwardly mobile citizens and emphasize the need for welfare policies that promote inclusive and accountable democracies, especially as the middle class grows.