Upward Mobility Act of 2026

The Upward Mobility Act of 2026 would establish a 5-year pilot program allowing up to 5 states to consolidate multiple antipoverty programs (including nutrition assistance, housing subsidies, child care, and employment services) into a single grant. The program aims to reduce "benefit cliffs" by limiting how much direct assistance benefits decrease as people earn more, measured by a "Marginal Effective Tax Rate." States would apply for the program, and the Secretary would approve based on how well the plan would improve employment outcomes and reduce reliance on benefits. The pilot would require states to measure specific outcomes like employment rates, earnings, and reduction in per-capita direct assistance to determine effectiveness.