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Bill

HB 267

Workers with disabilities; earned income disregard, cost-of-living adjustment.

2026 Regular Session Introduced by Anne Ferrell Tata

Virginia bill increases earned income that disabled benefit recipients can retain without losing assistance, with annual cost-of-living adjustments to encourage work participation.

Assigned HAPP sub: Health & Human Resources
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Bill Summary · HB 267

Legislative bill overview

HB 267 modifies Virginia's earned income disregard policy for workers with disabilities receiving state benefits, likely by increasing the amount of income that can be earned without reducing benefit payments and/or adjusting this threshold annually based on cost-of-living increases. The bill has advanced through the Health and Human Services Committee with a substitute version and now awaits Appropriations review.

Why is this important

Workers with disabilities often face a "benefits cliff" where earning additional income results in loss of critical healthcare, cash assistance, or other support—effectively penalizing employment. This bill aims to reduce that disincentive by allowing beneficiaries to keep more of their earnings, potentially increasing workforce participation and economic independence for a vulnerable population while potentially reducing long-term benefit dependency.

Potential points of contention

  • Fiscal impact: Cost-of-living adjustments create ongoing budget obligations that may be difficult to predict or control, requiring sustained appropriations review
  • Work incentive philosophy: Disagreement over whether benefit flexibility actually increases employment or primarily benefits those already working
  • Program administration: Implementation complexity in calculating variable disregards and ensuring consistent application across different benefit programs

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

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