Joni Ernst
U.S. Sen. Joni Ernst (R-IA) is working to set low-income individuals on a path to self-sufficiency under legislation she introduced to give states flexibility to undertake pilot projects that would help reduce poverty.
The Economic Mobility, Prosperity and Opportunities with Waivers that Enable Reforms for States (EMPOWERS) Act would allow states to apply for temporary, four-year waivers to reform federal programs for individuals in need. States would be required to submit a cost-neutral project that encourages employment, savings, financial literacy, family stability or other self-sufficiency measures.
“I’ve heard from Iowans struggling to make ends meet that due to current federal programs in place, taking one step forward often means taking two steps back,” Ernst said. “Worse yet, these programs sometimes punish self-sufficiency through stiff phase out rates, or ‘cliff effects’ which inadvertently penalize individuals when they gain employment or are awarded a raise. The EMPOWERS Act encourages states to develop solutions that utilize federal resources to remove barriers to self-sufficiency and help families and individuals find long-term success.”
Under the bill, states taking part in demonstration projects would receive the same amount of funding that they would have originally received, and savings realized from the project would be reinvested into further helping low-income individuals.
“The EMPOWERS Act recognizes what Americans already know: Washington doesn’t have all the answers,” U.S. Sen. Marco Rubio (R-FL), who introduced the bill with Ernst, said. “More than 50 years after President Lyndon Johnson declared war on poverty, it’s clear our social safety net programs are in desperate need of innovation and modernization.”
States would be required to contract with third-party evaluators under the bill, and an Interagency Board for Empowering Low-Income Families would be established to oversee the state waiver process.
The EMPOWERS Act was praised by Iowa Gov. Kim Reynolds for offering a chance for states to break down some of the barriers that currently prevent many individuals from leading more stable and fulfilling lives.