The Social Assistance Scheme (SAS) isthe main social assistance program in Kosovo and the soleprogram targeted at poverty reduction in Kosovo and,importantly, the only program in which household income andassets are used to identify beneficiaries. In the absence ofSAS, the overall poverty gap would have been 1.8 percentagepoints higher in 2016, and the poverty rate would have been1.5 percentage points higher. Yet, the importance of SAS inKosovo’s social protection system has declined; decreases inspending on targeted social assistance in Kosovo goesagainst a worldwide trend. The Government of Kosovo seeks toreform the SAS to eliminate discrimination in programdesign, promote inclusion and reduce poverty. This reportreviews the main design criteria of the SAS, its performancein international comparison, and provides directions forreform based on simulations with household survey data.