Addressing the "Benefits Cliff" and Encouraging Work for Welfare Recipients

Testimony

Addressing the "Benefits Cliff" and Encouraging Work for Welfare Recipients

February 26, 2014

Abstract

In this testimony before the State of Vermont House Committee on Human Resources, Heather Hahn discusses proposed changes to Vermont's TANF program, and more generally, the "benefits cliff" and work incentives that participants experience as they strive for self-sufficiency. Hahn explains how the key policy levers - asset tests and the earned income disregards - affect the benefits cliff and work incentives. She also places Vermont's Reach Up rules in the context of other states' TANF rules and discusses other important issues to consider in conjunction with changes in these rules.

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