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Bill

SCR 102

DIRECTING THE DEPARTMENT OF HEALTH AND SOCIAL SERVICES TO CONDUCT A REVIEW OF STATEWIDE BENEFIT CLIFFS AND IDENTIFY ACTIONABLE STRATEGIES TO ALLEVIATE CLIFF EFFECTS THAT CONTRIBUTE TO ALICE OUTCOMES.

153rd General Assembly (2025-2026) Introduced by Darius Brown and 19 co-sponsors

Delaware directs health department to study and propose solutions for "benefit cliffs" where income gains cause low-income workers to lose public assistance, creating work disincentives.

Passed In House by Voice Vote
0
WeVote Research Nonpartisan
Bill Summary · SCR 102

Legislative bill overview

SCR 102 directs Delaware's Department of Health and Social Services to conduct a comprehensive review of "benefit cliffs"—situations where modest income increases cause recipients to lose government assistance entirely, resulting in net income loss. The bill asks the department to identify and recommend actionable strategies to reduce these cliff effects and improve outcomes for ALICE households (Asset Limited, Income Constrained, Employed).

Why is this important

Benefit cliffs create perverse incentives where low-income workers face financial penalties for earning more income, effectively discouraging work advancement and creating poverty traps. Addressing this affects real people's ability to achieve economic stability and reduces inefficiencies in how assistance programs operate.

Potential points of contention

  • Implementation costs: Any recommended solutions to reduce cliffs (phase-outs, expanded eligibility) may require significant new spending or program restructuring
  • Scope and complexity: Benefit cliffs exist across multiple state and federal programs with different rules; comprehensive reform could be administratively complicated and may exceed a single department's authority
  • Competing priorities: Some may view expanded assistance as financially unsustainable, while others argue the current system underserves working families

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

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