January 6, 2026
Americans trapped behind a benefits cliff are disincentivized from pursuing higher-paying jobs. A new system that empowers, instead of entraps, people can create a path to achieve financial independence and a more hopeful future.”
WASHINGTON – Sen. Jon Husted (R-Ohio) introduced the Upward Mobility Act, a landmark bill to reform federal benefits by ending the benefits cliff and incentivizing career growth.
A benefits cliff occurs when Americans receiving federal public assistance experience a significant or complete loss of federal resources after a small increase in income. Americans receiving benefits may earn a raise or work more hours, but instead of increasing their total earnings, they end up worse off because their federal assistance drops sharply.
The Upward Mobility Act would create a five-year pilot program for five states to combine funding from multiple federal anti-poverty programs into a single funding stream to eliminate benefits cliffs. States would be free to utilize savings from reduced bureaucracy, as well as resources from non-profit and private sectors, to design and invest in programs that prevent benefits cliffs, while providing for the immediate needs of vulnerable populations.
Rep. Blake Moore (R-Utah) will introduce the companion bill to the Upward Mobility Act in the U.S. House of Representatives.
“Government assistance is not the dream for any American, but right now, it is the reality for too many hardworking people. Americans trapped behind a benefits cliff are disincentivized from pursuing higher-paying jobs. A new system that empowers, instead of entraps, people can create a path to achieve financial independence and a more hopeful future,” said Husted.
“The key word here is freedom. My bill would free states from bureaucratic rules that limit flexibility and allow them to invest those savings in reforms that eliminate benefits cliffs. It would free state governments to blend the public and private sectors to create a system that works best for their people. And it would free states to respond to the specific challenges confronting their population, ultimately giving Americans the freedom to pursue better jobs,” Husted concluded.
“Yet again, Utah is leading the nation with our one-stop-shop model for benefit programs designed to provide families with necessities and promote self-reliance. However, further innovation to streamline the distribution of benefits is limited due to federal red tape, resulting in benefit cliffs that disincentivize seeking higher pay. The Upward Mobility Act allows states the flexibility to design combined programs that meet the unique needs of their populations and would allow Utah to continue leading the way in helping families transition to financial independence without the fear of losing coverage,” said Moore.
Statements of support for the Upward Mobility Act:
“I commend Senator Husted for introducing his Upward Mobility Act. Benefits cliffs hold people back from reaching their full potential. Giving states the flexibility to address these ‘cliffs’ in various programs will encourage more people to take a new job, work more hours, or even accept a promotion. Senator Husted’s commonsense solution will help more Ohioans become self-sufficient, support their families and contribute to a stronger workforce. He has my full support,” said Mike DeWine, Governor of Ohio.
“The Ohio Department of Job and Family Services applauds Senator Husted for introducing the Upward Mobility Act which would allow states to take innovative approaches to align eligibility requirements across public assistance programs. Far too often, programs intended to provide temporary assistance become a barrier to self-sufficiency by creating benefit cliff scenarios that penalize upward mobility and career advancement. Allowing states to align programs is a win for recipients and employers,” said Matthew Damschroder, Director of the Ohio Department of Job and Family Services (ODJFS).
“We, at United Way of Greater Cleveland, are in daily conversation with hardworking families that need our help to triage and curate the overwhelming web of programs just to stay afloat. We applaud Senator Husted for advancing the Upward Mobility Act, which recognizes that real progress requires fixing antiquated, overly complex systems, not the people working hard within them. By aligning benefits and streamlining access, this legislation offers a more dignified, efficient, and empowering path forward, reducing burdens for families and the state while helping more people build lasting financial stability,” said Sharon Sobol Jordan, President & Chief Executive Officer, United Way of Greater Cleveland.
“Eliminating the benefits cliffs is not just a moral imperative—it’s an economic one. When workers hesitate to accept raises or promotions because they fear losing essential benefits, productivity suffers, and businesses could lose talent. The Upward Mobility Act offers a smart, flexible solution that empowers states to innovate, helps families achieve financial independence, and strengthens our workforce. The Greater Akron Chamber and Canton Regional Chamber support this legislation because it will help foster upward mobility and economic growth,” said John Rizzo, Vice President, Akron-Canton Advocacy Alliance.
“The benefits cliff is a real challenge, and without thoughtful solutions, it can limit job retention and mobility for some of our most vulnerable residents. We appreciate that U.S. Sen. Jon Husted is taking steps to address this at a time when employers across our region face significant challenges in attracting and keeping talent. In today’s hiring climate, every potential worker matters,” said Lyle Huffman, Executive Vice President, Government Affairs & Community Impact at the Youngstown/Warren Regional Chamber.
“The Upward Mobility Act takes important steps toward helping low-income Americans move up the economic ladder and achieve independence by reducing the penalties that the current welfare system imposes on work and marriage. In addition, by combining state experimentation with rigorous third-party evaluation, the Upward Mobility Act provides a template for determining what works. This is the sort of compassionate welfare reform that should draw bipartisan support,” said Michael Tanner, Senior Fellow at the Foundation for Research on Equal Opportunity (FREOPP).
“Senator Husted’s Upward Mobility Act tackles one of the most stubborn barriers holding too many families back. The benefits cliff forces people to choose between a raise at work and the support they need to make ends meet. The Ohio Business Roundtable was proud to partner with then–Lt. Governor Husted on Ohio’s pilot program, and we applaud Senator Husted for now bringing this issue to the national stage. The Upward Mobility Act is a commonsense step toward strengthening our workforce, supporting employers and, most importantly, helping families build long-term financial independence,” said Pat Tiberi, President & CEO, Ohio Business Roundtable.
“For years, businesses across Ohio have at times struggled to hire or promote talent due to the challenges posed by benefits cliffs. Thankfully, Senator Husted saw a way to tackle this challenge at the state level during his time as Lieutenant Governor. We are grateful for his leadership as Senator in demonstrating the potential to address this issue through the introduction of the Upward Mobility Act. This proposal will help thousands of Americans climbing the economic ladder to support themselves and their families, and we look forward to working with him to enact this important legislation,” said Steve Stivers, President and CEO, Ohio Chamber of Commerce.
“Benefit cliffs trap Ohio workers, stalling careers and gutting manufacturing. Manufacturers see employees turn down extra hours or permanent positions to avoid losing critical benefits. With the Upward Mobility Act, Ohio workers can finally earn more without losing the support they need. It’s a straightforward win for employees, their families and our state’s manufacturing strength,” said Ryan Augsburger, The Ohio Manufacturers’ Association President.
“The Toledo Regional Chamber of Commerce applauds Senator Husted for his efforts to address the benefit cliffs through The Upward Mobility Act Pilot Program. When an individual earns a small increase in income, they can risk a significant or complete loss of federal benefits, leaving families financially worse off than they were before a wage increase. This can also negatively impact employers by making it harder to retain or attract employees. We have been leading and experienced success in Lucas County with the benefits bridge pilot. The Upward Mobility Act can further enhance our region’s workforce and economic vitality by making this concept statewide assisting even more individuals and businesses,” said Brian Dicken, Vice President for advocacy and strategic initiatives, Toledo Regional Chamber of Commerce.
“I am proud to champion the Upward Mobility Act and the critical support it will provide to the families, helping them remain stable as they leave public assistance programs and preventing them from falling off the benefits cliff. The Benefit Bridge program, operated at our OhioMeansJobs Center has truly been a lifeline for working families. This flexible funded program helps prevent the benefit cliff by ensuring families don’t lose critical support the moment they advance in their employment. This program allows parents to pursue better jobs, higher wages, and long-term stability without the fear of losing immediate access to childcare, housing, healthcare, or other essential services. It has empowered working parents to succeed and opened real pathways to long-term economic independence,” said Theresa Lavender, Meigs County Job and Family Services (JFS).
“I believe that this could be a really important way to help people get off of government support. Right now, employers can only hire employees and pay them up to what the government gives them in benefits plus their wages. For example, we could start an employee at $15.00 an hour while they learn with the hopes that employee could grow into a higher-paying position. But if the government is paying them the equivalent of $22.00 per hour with benefits added after wages, that employee will not take promotions in their job and will remain at a lower rate of pay, instead of having a job to eventually getting off of government support. This bill is a win for all parties. And if you figure out how many people this could help, I think you would find it is a lot of money,” said Mark Porter, Mark Porter Auto Group.
“Thank you for sharing this thoughtful proposal. I am enthusiastic about the potential it holds to reshape how we support families and empower individuals to achieve lasting financial independence. The challenges posed by the current benefits cliff are well documented, and they continue to hinder the very upward mobility our safety-net programs are intended to promote. This proposal acknowledges that reality head-on and offers an innovative path toward a more flexible system. The creation of a multi-program pilot could help eliminate rigid burdens. Pilot states will be able to focus on what truly matters: helping families advance economically, removing disincentives to work and tailoring supports to the unique needs of their communities. The emphasis on individualized case management and collaboration with local partners is a refreshing shift toward human-centered design and policy. I am encouraged by the bill’s commitment to identifying measurable results. Participating states will have the opportunity to demonstrate meaningful progress, whether through increased earnings, stronger employment outcomes or the removal of unexpected barriers. Overall, this bill signals an intent to promote innovation and is a bold step toward a safety net that truly supports self-sufficiency. It invites states to modernize, reduces barriers and promotes an encouraging path to long-term success. Thank you, again, for sharing new opportunities that promote the best interest of the families, individuals and children that we serve here in Ohio,” said Tammy Osbourne-Smith, Jackson County JFS.
“For almost thirty years, our nation has invested in welfare reform and work-participation programs designed to move people who receive public assistance into the workforce. These efforts have succeeded in helping individuals transition into employment—but too often, those jobs are low-wage, unstable and insufficient to lift households beyond the working poor status. We have proven that people are willing to work; the Upward Mobility Act shows we are willing to help them thrive,” said Angela Carnaha, Workforce Development Specialist, Licking County JFS.
“Fairfield County Job and Family Services strongly endorse efforts that advance the goals of the Upward Mobility Act. We stand ready to support pilot programs and collaborative initiatives that empower families, strengthen the workforce, and promote genuine economic mobility,” said Corey Clark, Director of Fairfield County JFS.
“Family Resource Centers are a proven, community-based way to help Ohioans move from crisis to stability and into long-term economic mobility. By aligning public, private and philanthropic partners, centers like the Wickliffe Family Resource Center help working families keep the supports they rely on while they work more, earn more and build a better future. We strongly support the Upward Mobility Act and other common-sense policies that remove benefit cliffs and make it easier for families to advance without falling behind,” said Julie Ramos and Joseph Spiccia, Wickliffe Family Resource Center.
“The Wayne Economic Development Council strongly supports Senator Husted’s Upward Mobility Act, which represents a bold and necessary step toward helping families achieve long-term economic stability. By allowing states to streamline federal anti-poverty programs and eliminate benefit cliffs, this legislation empowers individuals to pursue higher earnings without fear of losing essential support,” said Maribeth Burns, Wayne Economic Development Council.
“The Upward Mobility Act reflects a transformative shift in federal antipoverty policy—creating a safety net that advances the inherent dignity, potential and purpose of every person. For decades, outdated programs have created barriers that trap individuals and families in cycles of dependency. This legislation offers a path forward that prioritizes work, opportunity, and upward mobility as the true measures of a successful safety net,” said leaders from The Alliance for Opportunity in a letter to Senate leaders John Thune (R-N.D.) and Chuck Schumer (D-N.Y.).
“The current patchwork of public benefits creates unintended barriers to economic opportunity in the form of benefits cliffs. Working families need a better approach that aligns supports around them so that no parent is forced to choose between pursuing a better career and ensuring they can feed their children. By removing arbitrary silos and empowering states to test innovative solutions, the Upward Mobility Act is a step toward building better evidence on what works to empower families to achieve financial stability and opportunity,” said Marsha Edwards, President & CEO of the Martha O’Bryan Center in Nashville, Tennessee.
“From my perspective, both as an employer struggling to retain entry level manufacturing workers, as well as a member of my local Business Advisory Council and Regional WIOA Board as an employer representative, providing rural workers with the flexibility to allow a smooth transition from reliance on support programs to well-paying career options would eliminate a huge retention hurdle. Currently, many entry level or reentering workers report to our HR department that pay increases over time will cause them to lose a myriad of benefits because of the benefits cliff. The loss of benefits such as SNAP/TANF, Housing Vouchers/ Rural Rental Assistance and Child Care Funding create a situation where employees must choose between maintaining benefits and continued work. In a time where manufacturers (especially those in rural areas with housing, daycare and transportation challenges) cannot attract and retain enough personnel to keep up with demand, limiting or eliminating the benefits cliff is a giant step forward in getting people who want to have fulfilling jobs able to do so without totally disrupting their family finances. When I listen to JFS representatives in our county discuss the hurdles regarding benefit program compliance and helping people achieve and retain employment status, it is clear to me the proposed federal level changes resulting from this proposed legislation would be a welcome red tape cutting tool. We at Mid West Fabricating Company fully support efforts at all levels of government to address the benefits cliff and allow continued employment for those seeking careers in entry level manufacturing jobs or any other in demand trades,”said Jennifer Johns Friel, CEO of Mid West Fabricating Company.
“Waivers from one-size-fits-all federal bureaucratic requirements enabled a few pioneering states to lead the way toward a successful national welfare reform effort in the 1990s. Similarly, today, Senator Husted’s Upward Mobility Act will encourage a handful of states to conduct rigorous experiments with innovative programs and partnerships to better promote opportunity for the next generation of American citizens,” said Jamie Bryan Hall, Director of Data Analysis, Ethics and Public Policy Center.
“The Ohio Workforce Coalition commends Senator Husted’s work to address benefit cliffs through the Upward Mobility Act. The Coalition understands the complicated relationship between public benefits and employment, and we look forward to continuing to work with Senator Husted’s office to ensure that the workforce development ecosystem features prominently and proactively in all economic mobility related efforts,” said Rebecca Kusner for the Ohio Workforce Coalition.
“The Upward Mobility Act hits directly at one of the biggest barriers we see every day at Impacting Tomorrow. Families are trying to do the right things, take on more hours, and move forward, but the benefits cliff punishes progress. It creates fear, instability, and a real hesitation to take steps that should lead to long-term independence. The pilot structure you outlined makes sense. Giving states the flexibility to braid funding, remove duplicative rules, and design systems that support upward mobility instead of trapping families is a meaningful step. The alignment with case management, community partners, and outcome-based evaluation is exactly what we need more of. From our side, the Act connects well with what we’re seeing on the ground. We’re serving roughly 810 people a day now across Market, CarryHer, Boutique, Pediatric OT, and Medical/Dental services. A significant number of families talk about the cliff as a real threat to their stability. Any policy that helps remove that fear while supporting higher earnings and self-sufficiency will have an immediate impact,” said Ken Tracy, Founder & CEO, Impacting Tomorrow (Loveland, OH).
“It is encouraging to hear that Senator Husted will be introducing legislation to address the benefits cliff. This is a challenge we see firsthand through our workforce, and it directly impacts upward mobility, retention, and long-term stability for working individuals and families. I appreciate the thoughtful approach your team is taking to engage employers and stakeholders early in the process,” said Jacqueline D. Cooley, Leader of Learning & Development, JBM Packaging (Lebanon, OH).
“Over the past five years, we have repeatedly seen graduates decline or walk away from skilled trade job offers—not due to lack of interest or ability, but because entry-level wages are often outweighed by the short-term financial support provided through government benefits. This dynamic creates a meaningful gap between the long-term value of starting a skilled trade career and the immediate financial realities individuals face. While these roles offer strong income growth within one to two years, many candidates simply cannot afford the initial transition period, making the upfront investment untenable despite the clear long-term upside,” said Josh Gutman, Co-Founder, The Kable Group/Kable Academy (Cincinnati, OH).
The Upward Mobility Act:
The Upward Mobility Act creates a pilot program for five states to combine funding from 10 anti-poverty programs and design solutions that help families move up the economic ladder. Funding previously dedicated to regulatory compliance, administrative requirements or ineffective programmatic functions could be used for individual case management, collaboration with local and non-government actors and benefit structures that eliminate benefits cliffs and boost employment and earnings.
Programs Included: The Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Section 8 Housing Vouchers, Section 521 Rural Rental Assistance Payments, Section 8 Tenant-Based Assistance, Public Housing Capital and Operating Funds, Child Care and Development Funding, Low-Income Energy Assistance Program (LIHEAP), Community Development Block Grant, Workforce Innovation and Opportunity Act (WIOA) Dislocated Workers Funding
The Department of Health and Human Services (HHS) Administration for Children and Family Services (ACF) will oversee and facilitate the pilot program. The ACF will select state proposals that demonstrate progress in removing benefits cliffs and helping people become self-sufficient. That means rewarding projects that are most likely to reduce benefits cliffs, reduce direct assistance through higher levels of employment and earnings among beneficiaries.
Pilot funding is capped at the prior year’s spending levels for the 10 programs, with only inflation adjustments allowed. States can also test limited projects covering at least 10% of their program funding. This limit on funding growth ensures that taxpayer dollars are targeted to those who need them. States selected for the program are permitted to tap into anti-poverty program contingency funds in cases of natural disaster or unprecedented need.
Full text of the bill is available here.
One-pager on the bill is available here.
Husted’s op-ed on the bill is available here.