U.S. Rep. Blake Moore (R-UT) on Jan. 6 sponsored legislation that would create a five-year pilot program for five states to combine funding from multiple federal anti-poverty programs into a single funding stream to eliminate benefits cliffs.
The Upward Mobility Act of 2025, H.R. 6949, would allow states to utilize the funds to design and invest in programs that prevent benefits cliffs while providing for the immediate needs of vulnerable populations.
“Yet again, Utah is leading the nation with our one-stop-shop model for benefit programs designed to provide families with necessities and promote self-reliance,” Rep. Moore said. “However, further innovation to streamline the distribution of benefits is limited due to federal red tape, resulting in benefits cliffs that disincentivize seeking higher pay.
“The Upward Mobility Act allows states the flexibility to design combined programs that meet the unique needs of their populations and would allow Utah to continue leading the way in helping families transition to financial independence without the fear of losing coverage,” he added.
Benefits cliffs occur when a small increase in income leads to a significant or complete loss of federal benefits, leaving families financially worse off than they were before a wage increase, according to the congressman.
If enacted, H.R. 6949 would create the pilot program for five states to combine funding from 10 anti-poverty programs and design solutions that help families move up the economic ladder.
Funding previously dedicated to regulatory compliance, administrative requirements, or ineffective programmatic functions could be used for individual case management, collaboration with local and non-government actors, and benefit structures that eliminate benefits cliffs and boost employment and earnings.
The federal programs include the 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.
The U.S. Department of Health and Human Services’ Administration for Children and Family Services (ACF) would oversee and facilitate the pilot program, according to a bill summary provided by the congressman’s staff.
The ACF would select state proposals that demonstrate progress in removing benefits cliffs and helping people become self-sufficient, and pilot funding would be capped at the prior year’s spending levels for the 10 programs, with only inflation adjustments allowed, among other provisions.
The measure has garnered support from Utah Gov. Spencer Cox, the Sutherland Institute, the Foundation for Research on Equal Opportunity, the Alliance for Opportunity, and the Ethics and Public Policy Center.