Policy makers worldwide have been capitalizing on women’s altruism to address household poverty. Poverty reduction resources mobilized through women have been proven to be more effective and efficient than the resources mobilized through men in terms of addressing household poverty in general and child poverty in particular. However, very few studies have been conducted to understand the contribution of such policies to women’s empowerment (or disempowerment). This article examines the impact of the Child Grant policy in Nepal on Dalit women who receive cash transfers that aim to improve Dalit children’s health outcomes. The experiences of Dalit Women in rural Dhading district, gleaned through qualitative interview and discussion methods, show that the policy has brought about some positive changes in the lives of Dalit women. However, the policy, on its own, has limited potential to destabilizing unequal gender relations within Dalit households. This study also found that policies and programs that support capacity building and political consciousness-raising would complement the Child Grant policy and empower Dalit women in a holistic way.