U.S. Representative Blake Moore introduced legislation on January 6, 2026, aimed at providing states with the flexibility to end "benefits cliffs" through a new five-year pilot program. The Upward Mobility Act would allow five selected states to combine funding from ten different federal anti-poverty programs into a single stream to incentivize career growth and financial independence.
Eliminating financial barriers
The proposed legislation seeks to address the phenomenon known as a benefits cliff, which occurs when a minor increase in an individual's income triggers a significant or total loss of federal benefits. This loss often leaves families in a worse financial position than they were before receiving a pay raise.
Under the Upward Mobility Act, five states would participate in a pilot program overseen by the Department of Health and Human Services (HHS) Administration for Children and Family Services (ACF). The ACF would be responsible for selecting state proposals that demonstrate progress in removing these cliffs and helping residents achieve self-sufficiency. According to Congressman Moore, the goal is to reward projects that reduce direct assistance by promoting higher levels of employment and earnings among beneficiaries.
Consolidating federal programs
The pilot program would allow states to consolidate funding from 10 specific anti-poverty programs, including the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Nebedy Families (TANF), Section 8 Housing Vouchers, and Child Care and Development Funding. Other included programs are Section 521 Rural Rental Assistance Payments, Section 8 Tenant-Based Assistance, Public Housing Capital and Operating Funds, the Low-Income Energy Assistance Program (LIHEAP), Community Development Block Grants, and Workforce Innovation and Opportunity Act (WIOA) Dislocated Workers Funding.
By merging these streams, states could use savings generated from reduced bureaucracy and administrative requirements to invest in new initiatives. These resources could be redirected toward individual case management, collaboration with local non-government actors, and the creation of benefit structures that prevent sudden loss of coverage.
Bipartisan legislative approach
Senator Jon Husted (R-OH) introduced companion legislation in the U.S. Senate to support the House bill. During a March 10, 2026, episode of the Sutherland Institute podcast "Defending Ideas," host Nic Dunn discussed the bipartisan proposal with both Senator Husted and Representative Moore.
Senator Husted emphasized that the primary goal of the legislation is freedom from bureaucratic constraints. He stated that his bill would free states from rules that limit flexibility, allowing them to blend public and private sector resources to create systems that work for their specific populations. He noted that a new system that empowers rather than entrapping people can create a path toward a more hopeful future.
Utah's role in innovation
Utah officials have expressed strong support for the measure, citing the state's existing leadership in program integration. Governor Spencer Cox stated that while Utah already utilizes a "one-door model" for public assistance and workforce programs, federal regulations currently limit further innovation.
Cox noted that the Upward $\text{Mobility Act}$ would allow Utah to continue helping families transition to financial independence without the fear of losing essential coverage. Similarly, Nic Dunn, Vice President of Strategy and Senior Fellow at the Sutherland Institute, described the act as a way to restore federalism in social welfare policy, which he argued would lead to better outcomes and stronger fiscal responsibility.
Funding and oversight limits
The financial structure of the pilot program includes specific constraints to ensure taxpayer dollars remain targeted. Funding for the pilot is capped at the prior year’s spending levels for the 10 participating programs, with only inflation adjustments permitted. States are also limited to testing projects that cover at least 10% of their program funding.
However, the legislation does provide a safety net for the states selected for the program. In instances involving natural disasters or unprecedented need, participating states would be permitted to tap into anti-poverty program contingency funds.
Support for welfare reform
Supporters from various organizations, including The Alliance for Opportunity, have characterized the legislation as a transformative shift in anti-poverty policy. In a letter to Senate leaders John Thune (R-N.D.) and Chuck Schumer (D-N.Y.), the group stated that the act prioritizes work and opportunity as the true measures of a successful safety net.
Other advocates, such as Michael Tanner of the Foundation for Research on Equal Opportunity, noted that the bill provides a template for determining effective welfare reform through state experimentation combined with rigorous third-party evaluation.
