Helping Americans break free from government dependency
By U.S. Sen. Jon Husted
R-Ohio
WASHINGTON, D.C. – Americans are the most generous people on earth. Yet, in Ohio and across the nation, well-intended government programs often trap our fellow citizens in poverty instead of providing a path to upward mobility.
Current federal assistance laws create what’s known as a "benefits cliff." This occurs when someone receiving public assistance loses a significant – or complete – amount of support after a small increase in income.
About one in three Americans receive some form of government assistance. Every year, means-tested benefit payments cost the American taxpayer $1.2 trillion. Americans trapped behind a benefits cliff are unable to move up the economic ladder.
With the loss of federal resources outweighing the benefits of a bigger paycheck, Americans’ careers stagnate and our economy suffers. This misguided policy entraps people in government dependency, taxpayers bear the burden, work ethic is eroded and businesses struggle to fill open jobs.
Picture a mom raising two kids in Montgomery County, receiving SNAP, Section 8 Housing, and child care benefits. If her income increases from $33,000 to $34,000, she faces a loss of $4,664 in federal resources. What should have been a $1,000 raise becomes a $3,664 loss. The system forces Americans facing the benefits cliff to logically choose to reject opportunity because accepting it would ironically create financial hardship.
It’s time for a new system that meets the needs of low-income families, rewards work and creates a real path out of poverty.
That’s why I am introducing the Upward Mobility Act.
This initiative would create a pilot program for states to combine funding from multiple federal anti-poverty programs into a single, flexible funding stream. The state would use this funding structure to gradually reduce benefits for people so they can say yes to opportunities without fear of losing their federal assistance overnight.
States would be free from one-size-fits-all bureaucratic rules that limit innovation. They would be encouraged to reinvest savings from reduced bureaucracy, employ the resources of the nonprofit and faith communities, and increase collaboration with local governments.
Those who want to work to get ahead, and build a more hopeful future, will find hope in the Upward Mobility Act.
Ask anyone who works on family poverty, and they’ll tell you about the burden of the benefits cliff. Ask employers, and they’ll say the same – they have workers who turn down promotions or extra hours because they can’t afford to lose their benefits. We can do better. The Upward Mobility Act will show us the way.
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