Op-Ed: Hidden costs of getting a raise for America’s working poor
Op-Ed: Hidden costs of getting a raise for America’s working poor
As Congress continues to debate the Farm Bill and the reauthorization of the Workforce Innovation and Opportunity Act, a critical flaw in the U.S. safety net system remains largely unaddressed: benefits cliffs.
Our research, alongside studies from the Atlanta Fed and others, highlights a troubling reality. Many vital safety net programs penalize participants for working and earning “too much” money. These benefits cliffs mean that working poor who receive even a modest raise can suddenly see important benefits like child care, food stamps, and Medicaid dramatically reduced or eliminated entirely.
The loss often far exceeds the raise that triggered it. Compounding the issue, each of these programs is typically administered by different agencies and caseworkers in most states, leaving recipients unable to get a comprehensive view of their financial situation.
