This study assesses the economic impact and implementation effectiveness of government welfare schemes targeted at trans-women in India, with a focus on the SMILE scheme and Garima Greh shelters. Relying solely on secondary data from government reports, parliamentary responses, state portals, NGO publications, and media investigations, the study reveals a persistent gap between policy intent and actual delivery. Despite increased budgetary allocations—from ₹25 crore in 2021–22 to ₹52.91 crore in 2023–24—fund utilization remains alarmingly low, with less than 1% spent in 2022–23. Operational shortcomings in shelter homes, delays in financial disbursal, and weak beneficiary tracking mechanisms further hinder program effectiveness. While legal recognition has improved, economic empowerment remains elusive for most trans-women, especially in states lacking proactive implementation. Success stories from Tamil Nadu and Andhra Pradesh highlight the importance of decentralized, community-led welfare strategies. The study concludes that enhancing transparency, inter-departmental coordination, and accountability is crucial for translating legal inclusion into tangible socio-economic gains.