Why The Benefit Cliff Matters
In the United States, individuals and families are often required to verify their need for public benefits through means-tests, typically through verification of income. The benefit cliff is a significant issue in both Philadelphia and across the U.S., where low-income families risk losing critical support, such as TANF, SNAP, or childcare subsidies, as their earnings increase. Often, a small raise in income can lead to a sharp drop-off in benefits, leaving families worse off than before, despite working harder or earning more.