State Level Options to Mitigate Benefit Cliffs
This report explores policy options Utah and other states can adopt to mitigate benefit cliffs, which occur when small income increases lead to sudden loss of public assistance.
The report details how benefit cliffs discourage work and create financial instability for low-income families, particularly those receiving benefits like TANF, SNAP, childcare subsidies, and Medicaid.
It outlines proven solutions such as gradually phasing out benefits, increasing income thresholds, and offering transitional supports. The report highlights promising pilot programs, offers short- and long-term policy recommendations, and emphasizes the importance of a whole-family approach, coordinated case management, and stronger employer partnerships to promote economic mobility.
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