Pilot Program: Consolidating Federal Aid to Boost Employment and Reduce Benefit Cliffs.
This Act establishes a pilot program allowing up to five states to consolidate federal funding from major anti-poverty programs, including food assistance, housing, and cash aid, into a single Upward Mobility Grant. The goal is to redesign benefit structures to encourage work and higher earnings by reducing "benefit cliffs"—situations where earning more money leads to a sharp loss of assistance. Participating states gain significant flexibility in managing these funds, but recipients must comply with work requirements.
Key points
Aid Consolidation: Funds for food, housing, energy, childcare, and cash assistance will be combined into a single state-managed grant for the pilot project.
Reducing Benefit Cliffs: New state benefit structures must limit the loss of assistance when participants increase their earned income, making work more financially rewarding.
Work Requirements: Recipients of direct assistance benefits under the pilot must adhere to work requirements, similar to those currently applied in the SNAP program.
State Flexibility: Participating states receive broad waivers from federal rules regarding eligibility and program operation, excluding civil rights and health/safety standards.
Status:
Introduced
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