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.