Gov. Ron DeSantis has signed legislation (HB 1267) offering low-income Florida families what lawmakers described as their first step toward economic self-sufficiency.
The measure makes changes to the Temporary Assistance for Needy Families (TANF) Supplemental Nutrition Assistance Program (SNAP) and School Readiness programs by addressing the “benefits cliff,” which causes beneficiaries to lose public benefits as a result of modest increases to their household income and often creates barriers to economic advancement.
“Benefit cliffs create a financial disincentive for low-income individuals to earn more income due to the destabilization and uncertainty that often results from a loss in benefits, especially when the benefit lost was essential to a parent’s ability to reliably work,” a House bill analysis reads.
Effects are most significant to families when that cliff results in the loss of child care or housing benefits, the analysis continues.
“While a family is receiving housing and/or child care benefits, the costs for these necessities are a defined, affordable share of the family’s income, but those expenses can significantly increase when the family enters the private market,” it adds.
While the legislation does not eliminate that cliff, the legislation creates a new case management system to transition families from TANF to assist them with the transition to self-sufficiency.
The bill also requires those receiving public benefits to use a financial forecasting tool to help navigate self-sufficiency as they transition away from public assistance.
“The bill replaces hand-outs with hand-ups, with the new School Readiness Plus program helping families get off these benefit programs completely. We want smooth transitions for those moving from public assistance to financial independence. No family should choose between a pay increase and receiving benefits,” bill sponsor Rep. Adam Anderson said.
In a separate move, Florida now requires TANF recipients to prove they are working, looking for work or going to school or some other vocational program. This bill allows TANF recipients to use adult general education and high school equivalency exam prep toward those work requirements.
The legislation also creates the School Readiness Plus Program to provide financial assistance to families transitioning from existing School Readiness programs. It also maintains access to affordable child care for those pursuing financial independence. It allocates more than $23 million for implementation.
The law takes effect July 1.
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