Cliff Effect

The Cliff Effect

Poverty nonprofitCircles USA has chapters in more than 20 states that bring community volunteers into partnership with families who are committed to getting out of poverty. In 2014, the Circles network was asked what is the biggest barrier to getting out of poverty. The answer was unequivocally the Cliff Effect that is built into assistance programs. The Cliff Effect occurs when assistance programs like childcare subsidies and Medicaid remove benefits faster than people can earn enough income to replace them. By not pro-rating the exit ramp to these programs, the government creates a financial crisis for people as they earn more income.

Cliff Effect Resources

 Addressing the Cliff Effect

 Cliff Effect Examples

• Cincinnati Summary of States’ Cliff Effect Policy and Legislation

 Mitigating the Cliff Effect

 PULSE GRAPHICS: Outlining the Disincentives and Opportunity Costs for Working Mothers

Cliff Effect Demonstration

Circles USA has partnered with New Mexico First to conduct our first demonstration in Albuquerque, New Mexico. 

 

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