Fixing Benefits Cliffs and Poverty
Outdated welfare rules discourage raises, promotions, and full-time work, holding families back from fulfilling careers, financial stability, and better futures.
What are the Benefits Cliffs?
Many low-income workers experience benefits cliffs, sometimes called “welfare cliffs.” In these disheartening situations, a small pay increase triggers the loss of essential supports like childcare or housing assistance before families are fully on their feet.
When working more leads to financial instability, people may delay accepting promotions, changing jobs, or increasing hours. This slows economic mobility and can keep households cycling on and off public assistance.
Because of Benefits Cliffs, Work Doesn’t Pay
Consider a working mother with two young children receiving benefits from five public assistance programs.
Earning $12.50/hr
$45,000
- Baseline
+ benefits
Gets a $0.25 raise
-$43,500
- -$1,500/year
Gets a $1.25 raise
$30,000
- -$15,000/year
The Costs of Benefits Cliffs
When families can’t move steadily toward self-sufficiency, the ripple effects are felt across Georgia’s state budget, economy, and workforce.
Families Stay Trapped
Financial insecurity forces working parents choose staying on public assistance instead of accepting a raise or a promotion
Hiring Slows
Employers can’t find people to work enough hours or fill higher-paying roles.
Program Costs Expand
Prolonged enrollment and frequent exits and re-entries increase the cost of administering public assistance programs.
Georgia’s Economy Weakens
Lower workforce participation and barriers to career advancement limit economic opportunity for families and our state.
Policy Reforms to Fix Benefits Cliffs
To solve this critical issue and reward progress rather than penalizing it, policymakers should make targeted changes at both the state and federal level.
Gradual Benefit Phase-Outs
Instead of abrupt cutoffs, gradually decrease public assistance as workers earn more. This encourages individuals to take meaningful jobs, accept promotions, or work more hours without fear of sudden benefit loss.
Coordinate Eligibility Thresholds
Align income eligibility limits across programs so families don’t lose multiple benefits simultaneously. Coordinated thresholds prevent the compounding effect of multiple cliffs hitting at once.
Transition Periods
Provide time-limited transition periods that give families time to adjust financially as they move toward self-sufficiency, rather than cutting benefits immediately when income increases.
Earned Income Disregards
Allow recipients to keep more of their earned income before it counts against benefit eligibility, creating stronger incentives to work and accept raises.
Featured Stories
Benefits cliffs aren’t just a policy phenomenon. They’re a difficult reality for hardworking Georgians trying to build better lives for their families.
Why one woman turned down a $70K job due to the benefits cliffs
Joyelle got an education, a job, and a promotion. She never expected her success would mean this
See the Benefits Cliffs in Your State
Our benefits cliffs calculator helps lawmakers, agency staff, and employers see when income increases will trigger a benefits cliff.
calculator.benefitscliffs.org
16+ Programs Modeled
SNAP, Medicaid, CHIP, Section 8, TANF, WIC, EITC, childcare subsidies, and more—all with state-specific rules and thresholds.
13 States and Growing
Georgia, Colorado, Florida, Kentucky, North Carolina, Ohio, Oklahoma, Tennessee, and Texas—with more states in development.
Custom Family Scenarios
Model any household: single parents, married couples, multiple children, varying ages—see exactly how income changes affect each unique situation.
Projected Policy Impacts
Model policy changes before implementation. See how adjusting thresholds or phase-outs would affect real families.
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