May 19, 2024
By Highpoint Digest News
Washington, DC (Highpoint Digest) – On April 11, 2024, ACF hosted the Less Poverty, More Prosperity — States Tackle Benefits Cliffs national webinar as a follow-up to the national in-person convening on benefit cliffs in January 2024. This webinar, available to participants from all 50 states and Washington, DC, offered an opportunity for cross- state learning on ways to diminish the cliff effect and discussion on possible federal actions.
A benefits cliff occurs when there is a gap between what someone will earn in a new position or job and the value of benefits lost due to increased income. Newly hired workers may decline employment offers (PDF) because the decrease in public assistance benefits is greater than the employment wage gain. Even slight increases in income can mean the loss of hundreds or even thousands of dollars in public assistance benefits .
“I went from having all benefits to one day being taken off all assistance within a month. The most challenging part is not being prepared for such a change especially because what I was making didn’t compensate for what I lost”. –Christina, Parent Leader
State leaders shared how they addressed cliffs in policy and program changes. Parents shared details of how the benefit cliffs limited their employment choices and financial security. Business leaders discussed the impact of benefit cliffs on the worker shortage and urged change to meet this gap. Federal leaders offered ideas and actions underway that seek to mitigate the impact of cliffs on families.
“When somebody is offered an opportunity to go from part-time to full-time and they tell us they can’t because of losing benefits, like child care — that hurts. Our philosophy is to help employees learn and grow, promoting from within whenever possible. A grocery chain is a low margin business, and we try to find most efficient ways of running the business, like reducing the churn.” —Business Leader
This webinar modeled a state-to-federal and federal-to-state feedback loop to decrease impact of cliffs on family economic mobility. Participants heard ways to identify key policy levers, improve messaging, bolster collaboration and increase understanding of ways to address cliff issues. Areas of interest for future learning and assistance include:
- What are most important actions a state might do to launch efforts to mitigate cliffs?
- What are examples of state systems where workforce development is collaborating with human services to address benefit cliffs?
- What are best practices for engaging employers and nonprofits to participate in solving cliff effects for families?
- How are federal agencies planning to work collaboratively to create a ladder/staircase vs. a cliff across program?
Sources: Administration for Children and Families
Photos courtesy of the Administration for Children and Families
