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Business groups back Nebraska public benefit bills

Posted at 5:53 PM, Jan 21, 2020
and last updated 2020-01-21 18:53:39-05

LINCOLN, Neb. (AP) — Nebraska’s top business groups have endorsed two bills designed to help low-income people transition from part-time to full-time jobs.

The bills seek to eliminate the so-called cliff effect in public benefit programs, an unintended consequence of state law that discourages recipients from seeking higher-paying jobs. Under current law, recipients of the Supplemental Nutritional Assistance Program and Nebraska’s child care subsidy lose their benefits as soon as their incomes rise above the federal eligibility limit.

For many recipients, losing their benefits means they’re making less money overall even though they’ve accepted a higher-paying job.