Benefits Cliffs: Effects on Workers and the Role of Employers
In this report, the U.S. Chamber of Commerce Foundation examines benefits cliffs – the loss of eligibility for public safety-net programs and benefits they provide as income rises above eligibility limits.
The document examines the “benefits cliff,” where workers abruptly lose public assistance as their incomes rise, creating significant financial challenges and discouraging career advancement.
It highlights the particular harm caused by sudden losses of childcare and housing subsidies, and recommends policy changes such as gradual benefit phase-outs, higher income limits, transitional supports, and increased transparency to promote economic mobility and stability.
Share this Resource:
