On Tuesday, March 17, as part of the Connecticut Urban Opportunity Collaborative (CUOC), the Greater Hartford Gives Foundation (formerly the Hartford Foundation for Public Giving) submitted written testimony to the Human Services Committee in support of House Bill 5540, An Act Concerning the Mitigation of Benefits Cliffs. Through our collective investment in a direct cash assistance pilot program in Bridgeport, Hartford and New Haven, we have witnessed firsthand that participants must sustain the public benefits they receive for a period of time in order to achieve financial stability and manage the changing immediate needs all of us experience in our lives.
The Connecticut Urban Opportunity Collaborative is a partnership among the Greater Hartford Gives Foundation, Fairfield County’s Community Foundation, and The Community Foundation for Greater New Haven. CUOC works to advance economic mobility and equity in communities across Connecticut by supporting community-driven solutions that help residents achieve financial stability and long-term opportunity.
In 2024, CUOC partnered with the national nonprofit UpTogether to launch the Connecticut Changemakers Fund, a multi-city direct cash assistance pilot supporting 120 resident leaders in Bridgeport, Hartford, and New Haven who are facing economic hardship while working to strengthen their communities. Over three years, participating households receive monthly payments totaling $12,600 to help alleviate financial challenges and increase economic stability.
Our work with Changemaker participants has revealed that many receive some public benefits and are interested in securing additional benefits they are eligible to receive. Participants also have shared the significant challenges families face when navigating public benefits systems and the risks posed by benefits cliffs—the sudden loss of critical supports when household income increases slightly. These cliffs can discourage individuals from taking on promotions, undermine financial stability, and make it harder for families to pursue upward mobility.
Research (available upon request) from CUOC’s peer benefit navigation initiative demonstrates how widespread this challenge is. Among participants receiving support through the Changemakers Fund, more than 80 percent were already receiving between one and four public benefits, and over 70 percent were potentially eligible for at least one additional benefit. Across participants for whom data was available, households faced combined potential losses averaging more than $736 per household each year.
For many working families, even modest increases in wages can trigger the loss of assistance such as SNAP, housing support, or health coverage before their earnings are sufficient to replace those resources. These sudden drops in support—known as benefits cliffs—can leave families financially worse off despite working more or earning slightly higher wages.
Evidence from the Connecticut Changemakers surveys underscores how precarious economic stability already is for many families. Most participants live far below the state median income, with more than half reporting annual household incomes under $20,000 and many struggling to pay for basic household expenses. Approximately 44 percent rely on public benefits such as SNAP, housing assistance, or WIC to meet essential needs, and nearly three-quarters report experiencing recent financial emergencies.
House Bill 5540 represents an important step toward addressing these challenges by improving the structure of the Temporary Family Assistance program and allowing families more flexibility and stability as they work toward economic independence.
CUOC particularly supports approaches that reduce abrupt benefit losses and create smoother transitions for families as their income increases. Policy strategies such as gradual benefit phase-outs, transitional assistance, and the elimination of strict asset limits, particularly as these limits relate to vehicles (e.g., having more than one car), can help ensure that work and increased earnings in Connecticut households truly lead to improved economic mobility rather than financial setbacks.
Participants in our Changemakers Fund pilot program need to sustain their limited financial resources to ensure they can manage their basic needs. We have found that participants make rational choices given their immediate needs. Mitigating the loss of Connecticut’s Temporary Family Assistance benefits provides people who receive these benefits another set of options that help them to continue to care for their families while working to build economic stability.
We also encourage the Committee to consider the following implementation principles as it deliberates this bill:
- Ensure benefits taper gradually rather than ending abruptly so families can increase earnings without losing essential support.
- Integrate benefits navigation and outreach using trusted community-based navigators to help residents understand eligibility rules and access benefits.
- Coordinate benefits across state agencies so residents do not have to navigate multiple systems independently.
- Ensure language accessibility and culturally responsive outreach so residents with disabilities or limited digital access can participate.
- Consider implementing benefits cliff mitigation for other programs such as Supplemental Nutrition Assistance Program.
- Provide adequate funding to administer the programs and needed public education and communication.
Connecticut families working hard to build stability should not be penalized when they take steps toward economic mobility. By addressing benefits cliffs and strengthening transitions off assistance, House Bill 5540 can help ensure that increased earnings translate into genuine progress for families across our state.