WASHINGTON, D.C. – U.S. Rep. Blake Moore (R-UT) has introduced legislation into the 119th Congress that would encourage states to find new ways to eliminate so-called “benefit cliffs” for their residents.
“The Upward Mobility Act would allow states the flexibility to design combined programs that meet the unique needs of their populations,” according to Moore. “It would also allow Utah to continue leading the way in helping families transition to financial independence without the fear of losing benefit coverage.”
Low-income families or individuals face a so-called “benefit cliff” when they receive financial assistance from the state or federal governments, then earn a raise and discover they are no longer eligible to receive continued benefits.
Having crossed an income threshold, they now make too much money to received further benefits, but not enough to sustain themselves or their household.
The challenges associated with benefits cliffs are complicated because, based on a variety of factors, they are individualized for each person.
Moore’s proposal would create a five-year pilot program for five states to combine funding from 10 federal anti-poverty programs into a single funding stream to eliminate benefits cliffs.
This would allow states to utilize savings from reduced bureaucracy, as well as resources from non-profit and private sectors, to design and invest in programs that prevent benefits cliffs while providing for the immediate needs of vulnerable populations, according to Moore’s staff in Washington.
Here in Utah, officials say that the state is already a national leader in streamlining government programs through innovation, as evidenced by the Beehive State’s one-door model for public assistance, workforce programs and best-in-the-nation ranking for upward mobility.
“Even so, federal rules limit how we can further innovate to clear the path for families eager to escape poverty while reducing government dependence,” Gov. Spencer Cox explains.
“The Upward Mobility Act would allow states the ability to craft innovative programs that work best for families transitioning into work and greater self-sufficiency,” he contends.
The federal efforts from which the state pilot programs would draw funds under the proposed Upward Mobility Act include the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Section 8 Housing Vouchers, Section 521 Rural Rental Assistance Payments, Section 8 Tenant-Based Assistance, Public Housing Capital and Operating Funds, Child Care and Development Funding, Low-Income Energy Assistance Program (LIHEAP), Community Development Block Grant, Workforce Innovation and Opportunity Act (WIOA) Dislocated Workers Funding.
Those pilot programs would be authorized to tap funding previously dedicated to regulatory compliance, administrative requirements or ineffective programmatic functions for individual case management, collaboration with local non-government entities and benefit structures that eliminate benefits cliffs and boost employment and earnings.
The pilot programs would be supervised by the Department of Health and Human Services and awarded on a competitive basis to states when their proposals demonstrate progress in removing benefits cliffs and helping people become self-sufficient.
Companion legislation to the Upward Mobility Act is being introduced in the Senate by Sen. John Husted (R-OH).
“I’m grateful to our Rep. Moore and Sen. Husted for introducing this bill,” Cox emphasized. “We need to usher in a new era of state-led innovation and this bill helps do that.”