U.S. Senator Jon Husted (R-Ohio) has introduced the Upward Mobility Act, a bill aimed at addressing the so-called “benefits cliff” in federal welfare programs. The benefits cliff occurs when individuals receiving public assistance lose significant or all benefits after a small increase in income, often making them financially worse off despite earning more.
The proposed legislation would launch a five-year pilot program involving five states. These states would be allowed to combine funding from ten different federal anti-poverty programs into a single funding stream. The goal is to give states flexibility to design and implement programs that eliminate benefits cliffs, while continuing to support vulnerable populations. States could use savings from reduced bureaucracy and collaborate with non-profit and private sector partners.
Representative Blake Moore (R-Utah) plans to introduce a companion bill 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.
Moore added: “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.”
The bill has received support from various state officials, business leaders, nonprofit organizations, and workforce development advocates across Ohio and beyond.
Mike DeWine, Governor of Ohio stated: “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.”
Matthew Damschroder, Director of the Ohio Department of Job and Family Services (ODJFS), said: “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.”
Sharon Sobol Jordan of United Way of Greater Cleveland noted: “We…applaud Senator Husted for advancing the Upward Mobility Act…By aligning benefits and streamlining access, this legislation offers a more dignified, efficient, and empowering path forward…helping more people build lasting financial stability.”
John Rizzo from Akron-Canton Advocacy Alliance said: “Eliminating the benefits cliffs is not just a moral imperative—it’s an economic one…The Upward Mobility Act offers a smart, flexible solution that empowers states…and strengthens our workforce.”
Other supporters include Lyle Huffman (Youngstown/Warren Regional Chamber), Michael Tanner (Foundation for Research on Equal Opportunity), Pat Tiberi (Ohio Business Roundtable), Steve Stivers (Ohio Chamber of Commerce), Ryan Augsburger (Ohio Manufacturers’ Association), Brian Dicken (Toledo Regional Chamber of Commerce), Theresa Lavender (Meigs County JFS), Mark Porter (Mark Porter Auto Group), Tammy Osbourne-Smith (Jackson County JFS), Angela Carnaha (Licking County JFS), Corey Clark (Fairfield County JFS), Julie Ramos & Joseph Spiccia (Wickliffe Family Resource Center), Maribeth Burns (Wayne Economic Development Council), leaders from The Alliance for Opportunity; Marsha Edwards (Martha O’Bryan Center); Jennifer Johns Friel (Mid West Fabricating Company); Jamie Bryan Hall (Ethics and Public Policy Center); Rebecca Kusner (Ohio Workforce Coalition).
The pilot program created by this act will let selected states pool funds previously allocated separately under ten anti-poverty initiatives—including SNAP; TANF; Section 8 Housing Vouchers; Rural Rental Assistance; Child Care Funding; LIHEAP; Community Development Block Grant; WIOA Dislocated Workers Funding—into unified strategies targeting upward mobility.
Oversight will be provided by Health and Human Services’ Administration for Children and Families which will select proposals based on progress toward removing benefit cliffs and promoting self-sufficiency among recipients.
Funding levels are capped at prior year spending plus inflation adjustments with provisions allowing contingency funds use during emergencies or disasters.
More information about welfare reform efforts can be found through resources such as the Center on Budget Policy Priorities.
