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Bill

S 99

An act relating to analyzing benefits cliffs within Vermont’s public assistance benefits’ structure

2025-2026 Regular Session Introduced by Scott Beck and 1 co-sponsor

The bill would study and propose reforms to reduce benefits cliffs, smoothing transitions as income rises so work and advancement aren’t discouraged.

Read 1st time & referred to Committee on Health and Welfare
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Bill Summary · S 99

Summary of Bill: S. 99 (2025-2026) – Vermont

Purpose and intent

S. 99 seeks to analyze and address “benefits cliffs” within Vermont’s public assistance benefits structure. A benefits cliff occurs when small increases in earned income or other positive changes in a household’s situation lead to disproportionately large reductions or loss of benefits, effectively discouraging work or upward mobility. The bill aims to study, identify, and propose measures to mitigate such cliffs to promote economic opportunity while maintaining essential supports.

Key provisions and changes proposed

  • Analytical study mandate: The bill directs state agencies (likely including health, welfare, and related departments) to analyze Vermont’s current public assistance programs to identify where benefits phases out or sharply reduce as income rises or circumstances change.
  • Assessment criteria: Evaluation would focus on thresholds, phase-out ranges, and the net effect on households’ total resources when earnings increase, including how combined benefits (e.g., food assistance, housing, healthcare, childcare support) interact.
  • Policy options and recommendations: Based on the analysis, the bill would require the development of policy alternatives or reforms intended to reduce the size or impact of cliffs. This could include:
    • Adjusting income eligibility thresholds or benefit phase-outs
    • Implementing smoother benefit transitions (e.g., ramping rather than abrupt reductions)
    • Coordinating across programs to minimize cumulative losses
    • Proposing targeted enhancements to support work, child care, or healthcare access as income rises
  • Reporting requirements: The study and its findings would be compiled into a formal report, potentially with legislative recommendations, to be submitted to the General Assembly or a relevant committee.
  • Timeline and process: The action history shows referral to the Committee on Health and Welfare after introduction, indicating the bill would move through committee review. Specific deadlines for the study and reporting would typically be established in committee or act language.

Who would be affected

  • Public assistance recipients: Individuals and families currently receiving benefits under Vermont’s public assistance programs, including components that may be affected by phase-out rules.
  • Households with rising earnings: Workers whose income increases but might face reduced net resources due to cliffs could experience the most notable impact from proposed reforms.
  • State agencies and program administrators: Departments administering welfare, food assistance, housing, healthcare, and related supports would conduct the analysis and implement any recommended changes.
  • Policymakers and lawmakers: The General Assembly would use the analysis and recommendations to consider further legislation.

Procedural and timeline considerations

  • Current status: Read 1st time and referred to the Committee on Health and Welfare (as of 2025-02-28).
  • Next steps: Committee deliberation, potential amendments, and development of a formal report with policy recommendations. If advanced, the bill would proceed through further readings and votes in the House and Senate, followed by any needed revisions or enactment.
  • Effective date: Not specified in the provided information; typical enactment would align with the bill’s passage into law and a defined effective date or phased implementation schedule.

Notes

  • The bill emphasizes a structural review of how benefits interact across programs, with the goal of reducing disincentives to work and promoting smoother transitions for households as their circumstances improve.
  • Specific dollar amounts, program names, or exact thresholds are not detailed in the summary provided; the actual bill text would contain precise provisions and any proposed policy changes.

Compiled from official sources — confirm details with the bill’s official record.

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