Navigating the Benefits Cliff

Shawn, a dedicated single mother who worked tirelessly to support her family while also relying on government assistance to make ends meet. Shawn found stability in her job and benefited from programs that provided essential support, such as childcare assistance and healthcare subsidies. However, as Shawn’s income increased through promotions and raises, she faced the daunting reality of the benefits cliff.

The benefits cliff occurs when an increase in income causes a reduction or loss of government benefits that are crucial for a family’s financial stability. For Shawn, a small raise meant a sudden loss of childcare subsidies and healthcare coverage, leaving her in a negative financial situation. Despite earning more, Shawn found herself struggling to afford necessities due to the sudden loss of support of government assistance.

Navigating the benefits cliff was challenging for Shawn, but she enrolled in Our Chance Tennessee, a program sponsored by the Martha O’ Bryan Center and Tennessee Alliance for Economic Mobility (TAEM) which helped her navigate difficult decisions about her career advancement and financial stability while ensuring her children’s needs were met. With the guidance of counselors and support from the Martha O’Bryan Center, Shawn learned to strategize her career path and financial goals carefully. She sought additional education and training to increase her earning potential while minimizing the impact of the benefits cliff.

Through perseverance, determination, and transitional support, Shawn managed to overcome the challenges posed by the benefits cliff. Today, she continues to advocate for policies that address this systemic issue and support other families facing similar struggles. Shawn’s story highlights the importance of comprehensive support systems and policy reform to ensure economic stability and opportunity for all.