Recommended reforms from Beyond the Cliff would enable more low-income families to advance economically

Beyond the Cliff, a coalition of more than 50 organizations led by Martha O’Bryan, visited Washington, D.C., to release recommended reforms to address the benefits cliff, a major barrier to upward economic mobility for hundreds of thousands of Tennessee families and millions nationwide.

BTC’s Policy Agenda, developed in collaboration with coalition members, advocates, policy experts, and individuals directly impacted by the benefits cliff, outlines a set of six policy recommendations to support economic mobility for working families as they transition off public benefits.

What is the benefits cliff?

The benefits cliff occurs when income increases for workers receiving government assistance like SNAP, Medicaid, and childcare subsidies, cause greater financial losses to their overall household budget. This punishes individuals for working hard to get ahead and leaves them worse off financially. More than 127 million Americans receive at least one form of government assistance, and nearly one in four workers receiving are estimated to have reduced hours, turned down a promotion or quit a job to avoid the benefits cliff. This represents millions of workers unable to advance in their careers, build stability for their families, and contribute fully to our economy as taxpayers.

To address this issue and help families move forward economically, Beyond the Cliff recommends the following reforms for policymakers:

1. Modify how government assistance is reduced as earnings increase.
2. Increase asset limits to enable families getting assistance to save for emergencies and for long-term financial goals such as the purchase of a car or home.
3. Align the Earned Income Tax Credit (EITC) to support the transition off public benefits.
4. Remove government silos that hinder coordination and innovation designed to promote economic mobility and solve for benefits cliffs.
5. Connect those getting public assistance to true career opportunities that offer self-sufficiency wages.
6. Ensure government assistance program service delivery is client-centered and focused on long-term economic success.

Read the full Policy Agenda from Beyond the Cliff

“The Benefits cliff is a major barrier to economic mobility for families accessing public benefits like SNAP, Medicaid, housing assistance, and childcare subsidies,” said Keith Barnes, Senior Director of Beyond the Cliff at the Martha O’Bryan Center. “When increased earnings result in a sudden loss in family stability, it can disincentivize hard work and discourage advancement. That’s why there is growing bipartisan support for change that aligns government assistance with the realities of achieving financial stability and opportunity.”

“All families have dreams and aspirations, but our current system works against them, forcing them to choose between their ambition and providing stability for their family’s well-being,” said Kent Miller, Chief Operating Officer for the Martha O’Bryan Center. “The good news is we can change the system and build a new way forward so all families can advance economically, achieve their goals, and thrive.”

The coalition’s policy recommendations come at a critical moment as recent changes to federal law have impacted investments in means-tested public assistance programs, and the country faces significant workforce challenges.

In visiting D.C., Beyond the Cliff is calling on federal policymakers to embrace policies that strengthen economic opportunity and improve well-being for families, make improvements to already existing public assistance programs, and create opportunities for family-sustaining careers.

Beyond the Cliff is a network of practitioners focused on eliminating benefits cliffs through policy and innovative solutions that ensure all individuals and their families have the resources and opportunity to work and advance economically. The coalition of more than 50 organizations includes state and local governments, nonprofit organizations, and collaboratives from across the country. Beyond the Cliff is convened by the nonprofit Martha O’Bryan Center. Learn more about Beyond the Cliff at www.beyondthecliffcoalition.org