U.S. Senator Jon Husted (R-Ohio) has introduced the Upward Mobility Act, a bill aimed at reforming federal welfare programs to address what is known as the “benefits cliff.” This term describes a situation where individuals receiving public assistance lose significant or all benefits after only a small increase in income, which can leave them financially worse off and discourage efforts to pursue higher-paying jobs.
The proposed legislation would launch a five-year pilot program in five states, allowing them to merge funding from multiple federal anti-poverty initiatives into a single funding stream. States would have flexibility to use savings from reduced administrative costs and collaborate with non-profit and private sectors to design programs that prevent benefits cliffs while meeting immediate needs of vulnerable populations.
A companion bill will be introduced in the U.S. House of Representatives by Rep. Blake Moore (R-Utah).
“Government assistance is not the dream for any American, but right now, it is the reality for too many hardworking people. Americans trapped behind a benefits cliff are disincentivized from pursuing higher-paying jobs. A new system that empowers, instead of entraps, people can create a path to achieve financial independence and a more hopeful future,” said Husted.
“The key word here is freedom. My bill would free states from bureaucratic rules that limit flexibility and allow them to invest those savings in reforms that eliminate benefits cliffs. It would free state governments to blend the public and private sectors to create a system that works best for their people. And it would free states to respond to the specific challenges confronting their population, ultimately giving Americans the freedom to pursue better jobs,” Husted concluded.
Moore noted Utah’s experience: “Yet again, Utah is leading the nation with our one-stop-shop model for benefit programs designed to provide families with necessities and promote self-reliance. However, further innovation to streamline the distribution of benefits is limited due to federal red tape, resulting in benefit cliffs that disincentivize seeking higher pay. The Upward Mobility Act allows states the flexibility to design combined programs that meet the unique needs of their populations and would allow Utah to continue leading the way in helping families transition to financial independence without the fear of losing coverage.”
Supporters include Ohio Governor Mike DeWine who stated: “I commend Senator Husted for introducing his Upward Mobility Act. Benefits cliffs hold people back from reaching their full potential. Giving states the flexibility to address these ‘cliffs’ in various programs will encourage more people to take a new job, work more hours, or even accept a promotion. Senator Husted’s commonsense solution will help more Ohioans become self-sufficient, support their families and contribute to a stronger workforce. He has my full support.”
Matthew Damschroder, Director of Ohio Department of Job and Family Services (ODJFS), also expressed approval: “The Ohio Department of Job and Family Services applauds Senator Husted for introducing the Upward Mobility Act which would allow states to take innovative approaches to align eligibility requirements across public assistance programs. Far too often, programs intended to provide temporary assistance become a barrier to self-sufficiency by creating benefit cliff scenarios that penalize upward mobility and career advancement. Allowing states to align programs is a win for recipients and employers.”
Leaders from non-profit organizations such as United Way of Greater Cleveland echoed this sentiment: “We applaud Senator Husted for advancing the Upward Mobility Act, which recognizes that real progress requires fixing antiquated, overly complex systems… By aligning benefits and streamlining access, this legislation offers a more dignified, efficient, and empowering path forward…”
Business groups including chambers of commerce also voiced support citing potential improvements in workforce retention and economic growth if workers no longer fear losing essential supports when accepting raises or promotions.
The pilot program created by this act would combine funding streams from ten major anti-poverty initiatives—such as SNAP (food stamps), TANF (Temporary Assistance for Needy Families), Section 8 housing vouchers, child care subsidies, energy assistance grants (LIHEAP), community development block grants, among others—into flexible packages tailored by participating states.
Oversight will be provided by Health and Human Services’ Administration for Children and Family Services (ACF). The ACF will select state proposals based on demonstrated progress toward removing benefit cliffs while promoting self-sufficiency through increased employment or earnings among beneficiaries.
Funding under this pilot will be capped at previous year levels with adjustments only allowed for inflation; at least 10% of program funds must be included in each state’s project proposal.
Numerous stakeholders—from local government agencies managing job services centers up through statewide business coalitions—expressed readiness both for participation in pilots as well as ongoing collaboration on solutions supporting economic mobility without loss of critical safety net protections.
