Senator Husted is Moving to Reduce Benefit Cliffs with the Upward Mobility Act

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On January 6, 2026, Senator Jon Husted (R-Ohio) introduced the Upward Mobility Act, S 3583.  This legislation is meant to reform federal benefits policy by ending benefit cliffs and incentivizing career advancement and earning growth for current recipients.

A benefit cliff takes place when Americans receiving federal public assistance experience a significant loss of federal resources after a small increase in their current income. The increased salary of those individuals receiving benefits may occur from receiving a raise from their employer or from working more hours. Instead of increasing their total earnings, the individuals end up worse off in the end because the federal assistance they receive severely diminishes. The public assistance system creates an inadvertent disincentive to improving one’s own circumstance.

This is where the Upward Mobility Act comes in. The bill creates a five-year pilot program for five states to consolidate their funding from various anti-poverty programs – including 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  - into one funding stream.

Participating states would have free rein to make use of savings from reduced bureaucracy, as well as resources from non-profit and private sectors. The bill protects every dollar that is currently being invested in these programs and indexes them for inflation to make sure that essential services are not being threatened. With access to these resources, states could then create and invest in programs that prevent benefit cliffs.

These pilots will help recipients move up the economic ladder without losing ground due to increasing their own earnings. And it will provide the nation with a pathway to improve lives and programs moving forward.

If you would like to learn more about the Upward Mobility Act, please contact Brian Perera or any of our ZHF Consulting professionals.