Navigating Benefits Cliffs: Barriers and Solutions
A benefits cliff may occur when an increase in income (e.g., from working more hours, getting a raise, or taking a new position) pushes a worker above the income eligibility limit for one or more public assistance programs, and the loss of assistance is greater than the value of the increase. This forces people to choose between their family’s immediate financial best interest and their own longer-term wage growth and career advancement. The Federal Reserve is hosting a Connecting Communities webinar on October 12, 2023 from 3:00 p.m. to 4:00 p.m. ET to explore this economic challenge. Participants will learn about tools developed by the Federal Reserve Bank of Atlanta to identify and inform mitigation strategies, as well as innovation pilots including Florida, North Carolina, Tennessee, and Washington D.C. that can inform state and community leaders working to develop solutions to the benefits cliff.