Benefits Cliff Policy Concerns

Overall Cliff Policy

• Connecticut: Day of Action to raise awareness on benefits cliffs. Several General Assembly budget bills could have dealt with the issue but most failed, which inspired the action, a mock funeral procession to the governor's office to eulogize the bills, including the refundable Child Tax Credit, a housing voucher funding boost bill, and a bill eliminating the asset limit on the HUSKY C medical insurance program.

• Missouri: SB45 Establishes a transitional benefits program for Temporary Assistance for Needy Families and the Supplemental Nutrition Assistance Program. The transitional benefits are designed to assist recipients of such programs whose monthly income has exceeded the maximum allowable income for program eligibility to continue receiving reduced benefits proportionate to the increase in income. [PASSED, 2023]

• New England: Whole Family Approach to Jobs Initiative (6 state, ACF Region 1) and its benefit cliff learning community report about a variety of initiatives done at the state level to mitigate benefits cliffs [2024]

• New Hampshire: HB4 Establishes a Benefits Cliff Effect Working Group to make recommendations to the Department of Health and Human Services (Department) in their effort to develop a plan to close the cliff effect, including the development and implementation of a benefits cliff calculator. Read progress on the group’s work here. [PASSED, 2019]

• New Mexico: HM25 A House Memorial to reduce the cliff effect and end poverty is moving through the New Mexico legislature. [INTRODUCED, 2024]

• Ohio: Childcare initiative aimed at addressing cliffs. Franklin County Commissioners voted to approve an additional funding to support the initiative which helps to make high-quality childcare more affordable for working families. [2024]

• Rhode Island: H5998/S0791 Authorizing all health and human services programs to develop a sliding scale decrease in benefits as a beneficiary’s income increases beyond the current 250 percent federal poverty level. [PROPOSED, 2023]

• Texas: Making Work Pay Act, HB1483 to solve benefit cliffs for SNAP and TANF [PASSED, 2019].

Policies that update access rules

• Alaska: HB196 simplifies the SNAP process by enacting broad-based categorical eligibility with the aim for participants to work and save for the future without facing a benefits cliff [PROPOSED, 2023]

• Alaska: SB149 Proposed SNAP expansion which would raise income thresholds and eliminate the asset test, based on the broad-based categorical eligibility (BBCE) policy of the federal government. [INTRODUCED, 2023]

• Arkansas: HB1340 Requires the Department of Human Services to seek a waiver from the United States Food and Nutrition Service to exclude veteran disability benefits as income for eligibility determinations  for SNAP. [PASSED, 2023] 

• Arkansas: SB306 Adjusted the SNAP asset limit for inflation. Directs the Department of Human Services to seek a waiver from the federal government to temporarily exempt Supplemental Nutrition Assistance Program enrollees from the current asset limits. [PASSED, 2023]

• Florida : HB121 Previously in Florida, families were eligible to receive Children’s Health Insurance Program (CHIP) benefits if their income was under 200% of that limit. Under the newly passed bill, as of January 1, 2024 families will continue to qualify for CHIP benefits until their income reaches 300% of the federal poverty limit, or $90,000 in 2023. The extended eligibility means that parents can earn more income—either through increased hours of work or career advancement—without triggering a "benefits cliff". [PASSED, 2023]

• Indiana: SB334 Simplified application for SNAP benefits for people 60 years of age or older or people with a disability. Shortened the application form, reduced the number of verification requirements, and allowed individuals to waive recertification interview requirements. The Bill allows SNAP participants who certify or recertify for benefits under the simplified requirements to remain eligible for benefits for 36 months. [PASSED, 2023] 

• Indiana: HB1361 passed legislation so that those actively pursuing higher-paying jobs or workforce education and training don’t lose their government benefits solely because of an increase in their income. House Enrolled Act 1361 allows families who receive TANF to save up to $10,000 in additional assets and keep their benefits. [PASSED, 2022]

• Iowa: HF 302 increases the income level at which families would lose eligibility for child care assistance, to address the benefits cliff, and establishes a graduated co-pay system where their contribution to their child care expenses as their income rises. [PASSED, 2021]

• Nebraska: LB108 Change provisions relating to SNAP (increasing gross income limits) [PASSED].

• Nebraska: LB1049 Raise eligibility levels for child care subsidies, to help Nebraskans transition to better work. [PASSED, 2021]

• New Jersey:  A1715 Extends the certification period to 12 months for SNAP participants and 24 months if all adult household members are elderly or disabled. [PASSED, 2023]

• New York : A1288 Eliminates asset limits amount for any public assistance program. [PROPOSED, 2019, 2020]

• New York: A4330 Relates to resource exemptions for applicants for public assistance programs; amends the Welfare Reform Act in relation to the effectiveness thereof. [PROPOSED, 2019, 2020]

• New York: SB1353 Exempts certain income and resources provided to persons enrolled in certain pilot programs in determining eligibility for public assistance benefits. [PASSED, 2023]

• Michigan: SB35 Bill amended the Social Welfare Act to remove the requirement that the Michigan Department of Health and Human Services (DHHS) apply an asset test to determine an individual’s financial eligibility for the Food Assistance Program (FAP). [PASSED, 2023]

• Texas: HB1287 Allows for the exclusion of certain resources in determining eligibility for SNAP. Disregards from the SNAP asset limit up to $22,500 for an applicant or participant’s first vehicle and up to $8,700 for each additional vehicle.  [PASSED, 2023]

• Federal: HB7024 The bipartisan Child Tax Credit expansion would significantly benefit millions of children. See visuals on what would change for families. [ENGROSSED, 2024]

• Federal: ASSET ACT, S3276 relates to eliminating asset limits on TANF, SNAP, and LIHEAP, and raising asset limits on SSI. [INTRODUCED, 2020]

• Federal: S1371 Working Families Tax Relief Act, expands EITC and modifies child tax credit, increasing the amount and the portion that is refundable. [INTRODUCED, 2017]

• Federal: End Child Poverty Act, H6598 End Child Poverty Act, introduced by Rashida Tlaib and Mondaire Jones, to tackles cliffs through tax code [PROPOSED, 2022]

• Federal: The HOPE Act, H2336  reintroduced by U.S. Representative Joe Morelle and U.S. Senator Kirsten Gillibrand, to utilize updated technology to apply for multiple benefits at once [INTRODUCED, 2020, 2021]

• Federal: SSI Savings Penalty Elimination Act, S4102 sponsored by Sen Rob Portman (R-Ohio) and Sherrod Brown (D-Ohio), read more about the bill reintroduced in 2023 [INTRODUCED, 2022, REINTRODUCED 2023]

Policies to conduct benefits and benefits cliff studies

• Hawaii: HCR21 introduced a bill to study how to increase SNAP access, requesting that the study include options for addressing the benefits cliff. [INTRODUCED, 2024]

• Kentucky: HB708, sponsored by Rep. Jonathan Dixon, requires the Cabinet for Health and Family Services to develop a proposal to make available a “benefits cliff” calculator to Kentuckians applying or reapplying for public assistance benefits, and creates a task force to study Kentucky’s benefits cliff issues. In 2024, HHS Delivery System Taskforce continues the Benefits Cliff Taskforce’s work [PASSED, 2022]

• New York: S7743 Directs a study on the impact of increased minimum wage on eligibility for income based services, programs and subsidies. See results from 2023 proposal here. [INTRODUCED, 2020, 2023]

• Pennsylvania: HM The legislation would direct the Joint State Government Commission to conduct a study and issue a report on the impact of benefits cliffs in Pennsylvania. House press release on Rep. Kenyatta’s benefits cliff legislation. [INTRODUCED, 2024] 

• West Virginia: S789 Introduced a bill to study Medicaid in the state, including provisions to report on strategies to mitigate the benefits cliff. [INTRODUCED, 2024]

Policies that provide income disregards 

• California: SB 609 The bill requires the Department of Social Services to include adult education and career technical education programs in the list of programs that are deemed to meet the SNAP employment and training exemption set by the federal regulations. [PASSED, 2023]

• New York: A6709B Exempts certain income and resources provided to persons enrolled in certain pilot programs in determining eligibility for public assistance benefits, to establish a 6 month, 100% income disregard for New Yorkers receiving cash assistance and participating in job training, postsecondary education programs and unsubsidized and subsidized employment programs (see also this related bill) [PASSED, 2022]

• New York: S6589A Senator Roxanne Persaud and Assembly Member Linda Rosenthal have introduced S6589/A7534, establishing a six-month, 100 percent income disregard for New Yorkers receiving cash assistance and participating in job training programs. [INTRODUCED, 2021]

* We’d like to give a shout out to National Conference of State Legislatures Benefits Cliff report, and The Women’s Fund of Greater Cincinnati did a fantastic roundup of state by state benefits cliff policy in 2019.