Introduction to Benefits Cliffs and Public Assistance Programs

Benefits cliffs refer to the sudden and often unexpected decrease in public benefits that can occur with a small increase in earnings. This happens when families receive benefits through a public assistance program, earn a raise, and then become ineligible to continue receiving benefits despite being unable to sustain their household. This National Conference of State Legislatures report provides an overview on the Federal income eligibility requirements for public assistance programs, including housing assistance, utility assistance, food and nutrition assistance, direct cash assistance, child care, and health insurance. Additionally, it highlights work requirements for these public assistance programs and state policy strategies and legislation related to benefit cliffs.