Piloting Transitional Benefits to Mitigate the Benefits Cliff: Implementation Lessons and Early Findings

Session Submission Type: Panel

Abstract

The benefits cliff represents a critical policy challenge, creating a disincentive for low-income individuals to pursue employment or wage increases when marginal income gains trigger a loss of public benefits, potentially reducing net resources. For families working toward economic security, benefits cliffs can be a serious impediment to financial independence. While systemic policy reforms like graduated phase-outs are vital, they remain complex, long-term endeavors. In the interim, state and local governments are working with community partners to pilot strategies such as transitional benefit payments and benefits counseling to mitigate the cliff's impact. There is a lack of evidence on the best mitigation strategies, yet effective approaches are essential to support families’ economic mobility and self-sufficiency. This panel explores implementation lessons and early findings from four different types of programs employing transitional supports.

The first paper, Tennessee’s TANF Opportunity Pilot Initiative (TOPI): Lessons Learned from Implementing Transitional Benefits, presents findings from a mixed-methods implementation evaluation of two TOPI pilots offering benefits counseling and transitional benefits (for up to four months) to participants who lose benefits due to increased earnings. Findings highlight implementation challenges and lessons learned around messaging and communication, benefit distribution mechanisms, participant utilization rates, and adequacy of the benefit duration.

The second paper, Mitigating the Loss of TANF Through Community Partnerships: A Process Evaluation of Hennepin County’s Benefits Cliff Pilot, examines a unique approach where 13 community agencies designed diverse programs, including transitional benefits, for residents losing TANF. The process evaluation found that program flexibility and direct financial support facilitated program engagement and financial stability, but underscored the limitations of pilot programs in overcoming systemic barriers like housing and child care affordability, highlighting the need for broader policy reform.

The third paper, Transitional Benefits in a 2Gen Pilot Program: Implementation and Early Findings from Onondaga County, NY, describes a novel and multigenerational initiative providing intensive case management and 12 months of transitional TANF/SNAP benefits post-eligibility loss. Presenting early results from an ongoing randomized evaluation, the paper finds positive outcomes on participant income and well-being and discusses implementation complexities amidst evolving state policies.

The final paper, The Role of Transitional Support in Workforce Development: Findings from Washington State’s Economic Security for All (EcSA) Program, reports findings from a formative evaluation of the EcSA workforce development initiative. Findings suggested that substantial supportive services provided during training, including monthly stipends acting as transitional benefits, were a key factor in participants’ ability to stay enrolled and complete the program. In addition, EcSA exiters’ post-completion earnings appeared considerably higher than their pre-participation levels.

Our first discussant, Alex Rudder (Financial Reserve Bank of Atlanta), will discuss cross-cutting themes from these diverse pilot approaches and early findings. Our second discussant, Ryan Erickson (Social Finance), will introduce a new Benefits Cliff Collaborative to foster collaboration among researchers, policymakers, and practitioners and discuss how findings from these papers can inform the development of a shared learning agenda.

Policy Area

• Poverty and Income Policy

Secondary Policy Area

• Family and Child Policy

Chair

• Linda Giannarelli, Urban Institute

Discussants

• Alex Ruder, Federal Reserve Bank of Atlanta

• Ryan James Erickson, Social Finance

Organizer

• Michele Abbott, MEF Associates

Individual Presentations

• Tennessee’s TANF Opportunity Pilot Initiative (TOPI): Lessons Learned from Implementing Transitional Benefits - Presenting Author: Michele Abbott, MEF Associates; Non-Presenting Co-Author: Carly Morrison, MEF Associates

• Process Evaluation of Hennepin County’s Benefits Cliff Pilot: Findings on Design and Implementation Strategies - Presenting Author: Laura Soltani, University of Minnesota - Twin Cities

• Transitional Benefits in a 2Gen Pilot Program: Implementation and Early Findings from Onondaga County, NY - Presenting Author: Hannah Patnaik, Syracuse University

• Evaluation of Washington State’s Economic Security for All Program: The Role of Transitional Supports - Presenting Author: Madeleine Levin, Social Policy Research Associates; Non-Presenting Co-Author: Marian Negoita, Social Policy Research Associates