Food Stamps: New Report Outlines 5 Possible Ways To Combat SNAP ‘Benefits Cliffs’ at Federal Level — Would They Save Recipients Money?

A benefits cliff is when a household loses more in net income and benefits from governmental assistance programs — like SNAP — than it gains from additional earnings. According to a report by the Georgia Center for Opportunity, this net loss is a “perverse incentive” discouraging any desire to increase income.

“The very basic concept is that when you lose more in taxes and benefits than you receive from a gain in additional earnings, that’s how we’re defining a cliff,” Erik Randolph, GCO’s research director, told The Center Square. “Let’s say that you get a pay raise worth $2,000, but you actually lose $3,000, you’re $1,000 behind; you’re worse off financially than what you were.”