Upward Mobility Act of 2026 (S. 3583)

Summary

Lets up to five states combine money from different federal aid programs into a single grant to help people find jobs and become less reliant on aid.

What problem does this solve?

Current aid programs can have confusing rules and may stop suddenly when a person starts earning more money, which can discourage them from working. This bill allows states to test new ways of combining these programs to make it easier for people to move from welfare to work without losing all their support at once.

What does this bill do?

Establishes a pilot program for states

Creates a program allowing up to five states to test a new way of handling anti-poverty aid for a five-year period.

Creates 'Upward Mobility Grants'

Combines federal money from several aid programs, like food stamps (SNAP) and housing assistance, into a single grant for participating states.

Allows states to waive federal rules

Lets states change or get rid of certain federal rules about who is eligible for aid and how programs are run, in order to make them simpler.

Reduces the 'benefit cliff'

Gives priority to state plans that ensure people do not lose more than 50 cents in benefits and new taxes for every extra dollar they earn from working.

Applies work requirements

Requires people receiving direct aid through the pilot program to follow the same work rules that apply to the food stamp (SNAP) program.

Requires independent evaluations

Forces states to hire an outside expert to study the pilot program each year and report on whether it is helping people get jobs, earn more, and rely less on aid.

Protects certain rules from being waived

Prevents states from changing rules related to civil rights, health and safety, labor standards, and protections for religious freedom.

Allows access to emergency funds

Lets states in the pilot program still ask for extra federal money from contingency funds during bad economic times, natural disasters, or other emergencies.

Who does this affect?

Low-income individuals and families
State government agencies
Nonprofit and faith-based service providers

What is the real world impact?

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Increases state flexibility

Gives states more control over how they use federal anti-poverty funds, allowing them to design programs that better fit the needs of their residents and local communities.

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Encourages work and self-sufficiency

Aims to fix the "benefit cliff," where a small pay raise can cause a person to lose a large amount of government aid. By smoothing this transition, the program encourages people to take jobs and increase their earnings.

When does this start?

The pilot program would begin after this bill becomes law and would last for five years for each participating state.

Application Approval

The Secretary of Health and Human Services must decide whether to approve a state's application within 90 days of receiving it.

Pilot Project Duration

Each state approved for the program will run its pilot project for a single period of five years.

Public Comment Period

After a state applies, the public will have a 30-day period to submit comments on the application.

Annual Evaluations

Participating states must hire an independent evaluator to review the project's performance and submit a report each year.