The Economic Pathways Coalition worked for years to secure a Cliff Effect Pilot Program in Massachusetts legislation to support families’ transition off of public benefits. In 2022, the legislature passed the pilot as part of an Economic Development Package!
The pilot is called the Bridge to Prosperity Pilot!
This bill creates a three-year pilot program for 100 low-income working families or individuals receiving any form of public assistance. It offsets the disproportionate impact that the Cliff Effect has on families transitioning out of public assistance, allowing participants to transition off of benefits without facing an income “Cliff.” The bill also includes a savings component that would be paid out after the third year of the program.
The pilot will test whether a cash payment is an effective tool for the Commonwealth to close the cliff gap, thus ensuring that workers are not worse off financially as they move up the income scale.
We are so grateful the legislature included the Cliff Pilot in the 2022 Economic Development bill!!
There was a last-minute change made to the text that we are now working on implementing. The payments made to families were originally in the form of an expanded Earned Income Tax Credit (EITC), but the legislature changed those to cash payments disbursed by the Department of Transitional Assistance (DTA).
Right now, the job of the Economic Pathways Coalition has shifted to planning the implementation of this monumental pilot, and raising money to ensure it is financially possible to provide these payments. If you'd like to support the implementation of the Cliff Effect Pilot, you can reach out to your legislators and tell them you want more funding for the Cliff Effect Pilot!
ANOTHER OPTION:
The Massachusetts Legislature passed an economic development package that includes the cliff effect pilot program! (See: Chapter 268 of the Acts of 2022, Line 4403-2001)
This bill creates a three-year pilot program for 100 low-income working families or individuals who are receiving any form of public assistance. It offsets the disproportionate impact that the Cliff Effect has on families transitioning out of public assistance, allowing participants to transition off of benefits without facing an income “Cliff.” The bill also includes a savings component that would be paid out after the third year of the program.
The pilot will test whether a cash payment is an effective tool for the Commonwealth to close the cliff gap, thus ensuring that workers are not worse off financially as they move up the income scale.
- It’s good for economic development – businesses need workers
- Decreases generational poverty
- Rewards work
- Helps people who are trying to advance in their careers
- Is a hand up, not a handout
- Massachusetts is a leader on this issue – we’d be the first state to leverage a cash payment mechanism to remove the cliff gap
- Is key to our economic recovery in the COVID era – we want everyone who can participate in the workforce to participate
- Includes a savings component up to $10,000 per participant upon successful completion of three-year program
- Model can be replicated throughout the Commonwealth
- Participants achieve economic stability between $25—$31 per hour; research shows higher income increases health and education outcomes