For any county in the United States, use this Dashboard to visualize how dollar value and composition of public assistance changes with income and to identify when wage gains make a family worse off financially (a benefits cliff) or no better off financially (a benefits plateau) than before the wage increase. 1

Use the navigation pane on the left to select a location, family type, and public assistance programs of interest.


Public Assistance by Employment Income

The chart below shows the dollar value and composition of public assistance at different income levels. As income increases, the value of each selected public assistance program changes. For some programs, the value of public assistance gradually phases out, while for others the loss is sudden.


Family Net Financial Resources
(Income + Public Assistance - Taxes - Expenses)

The chart below shows how changes in income affect family net financial resources. As income increases, the programs shown in the chart above phase out. As a result, the net financial resources may flatten (reflecting a benefits plateau ) or even dip (reflecting a benefits cliff ) as income increases.



1 Note, the charts above limit the 'Employment Income' up to $100,000.

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About this Dashboard


The calculations for public assistance programs and taxes are determined using the Policy Rules Database (PRD) - a repository that contains rules for all major federal and state public assistance and tax credits. PRD is available at a request for non-profit use.


For questions contact cliff@atl.frb.org


Publications and research reports based on the Policy Rules Database or this tool must cite it appropriately. Suggested citation:
Ilin, Elias and Ellyn Terry. 2021. 'The Policy Rules Database.' Federal Reserve Bank of Atlanta.
Available at: "www.frbatlanta.org/economic-mobility-and-resilience/advancing-careers-forlow-income-families/policy-rules-database.aspx."


Frequently Asked Questions


What types of income are assumed to be $0?

The following types of income affect eligibility for some programs and are assumed to be $0 for the purposes of generating calculations in this tool: unemployment insurance, pensions, and state disability payments.

What is non-taxable cash assistance?

In this tool, non-taxable assistance is counted as gift income. Gift income is not subject to income or FICA taxes, but will count as income for some public assistance programs. Gift income is different from stipends.

How is out-of-pocket health insurance cost determined?

For purposes of calculating net financial resources, PRD automatically calculates the out-of-pocket cost of health insurance based on the lowest cost option the household is eligible for. To determine the potential set of health insurance options PRD takes into consideration the programs you select from the list and the cost of purchasing health insurance through an employer. The cost of health insurance (both the total cost and the unsubsidized out-of-pocket cost) varies by source. For example, the premium paid each month will depend on whether the person is receiving Employer Sponsored Health Insurance, Medicaid/CHIP, or health insurance through the Health Exchange Marketplace.

How do the results differ for persons with disabilities?

This tool incorporates special rules for individuals with disabilities for the following programs: SSDI, SSI, Medicaid, SNAP, Section 8 and Federal Income Taxes. In some states, children with disabilities may be subject to different rules for the CCDF program; these state-specific rules are not incorporated. The following programs count SSI and SSDI income towards eligibility: SNAP, WIC, School Meals, Head Start/Early Head Start, and Section 8.

Are eligibility redetermination periods factored in to these calculations?

Some programs have probational periods where participants are able to keep a benefit for some period after they are no longer eligible - for example, if their income passes a threshold. Probational periods vary by state and program and are not factored in to the PRD.

Benefits Cliff


Some working families experience financial barriers to economic mobility. One significant barrier occurs when career advancement puts them above the income eligibility threshold for public assistance programs. Due to the loss of these programs, career advancement opportunities may result in the family being worse off (a benefits cliff) or no better off (a benefits plateau) financially than before the wage increase.


This loss of means-tested public assistance is an effective marginal tax rate on income gains. High effective marginal tax rates mean that some workers have a financial disincentive to invest in their own human capital and advance from lower-wage work to jobs that lead to economic self-sufficiency. The severity of benefits cliffs and plateaus depends on factors such as the worker's family composition and geographical location.


Learn more about benefits cliffs and how they can be addressed on our website.



methodology

The Minimum Household Budget is the bare minimum cost of household basics necessary to live and work in the modern economy. These basic budget items include housing, child care, food, transportation, health care, and technology (a smartphone plan), plus taxes and a contingency (miscellaneous) fund equal to 10% of the household budget. The budget is calculated separately for each county and for different household types.

The Minimum Household Budget largely reflects the work of United for ALICE. ALICE® stands for Asset Limited, Income Constrained, Employed and includes households that earn more than the Federal Poverty Level yet struggle to afford basic expenses.

In specific instances, the CLIFF suite of tools may incorporate different values for food and health care costs than those provided by United For ALICE. For example, ALICE assumes that a household participates in an employer-sponsored health insurance plan when available. In contrast, CLIFF tools determine and assign the most cost-effective bundle for a household’s health care needs. This could include a scenario in which an adult participates in an employer insurance plan while children in the household receive Medicaid. Additionally, there are scenarios in which the CLIFF suite of tools may incorporate slightly different food costs than the calculations produced by United For ALICE. Specifically, the value of any benefit in the CLIFF suite of tools, including those associated with food expenditures, cannot exceed the cost of the associated expense. For additional information, please visit www.unitedforalice.org/methodology.

The calculations for public assistance programs, taxes, and tax credits are produced using the Policy Rules Database.

To estimate taxpayer savings we assume that a person who transitions off of a public assistance program with a wait list is not replaced by another person.

Subsidized Child Care: Subsidized child care programs are funded by the Child Care Development Fund grant (CCDF). This program has a different name and different eligibility rules in each state. The subsidized child care program provides funding to offset the costs of child care subsidized daycare services to families below state-specified income levels. In almost all states, there is a different income threshold for initial enrollment and continuous enrollment. This lets families stay on the program as their income increases beyond the initial enrollment income threshold. The federal regulations cap eligibility at 85% of State Median Income. Families pay a copay based on a sliding scale fee schedule, which varies at the county or state level. Note that subsidized child care programs have a waitlist in many cities.

Head Start and Early Head Start: Children from birth to age five and pregnant women from families with incomes below the poverty guidelines are eligible for Head Start and Early Head Start services. Children younger than three are eligible for Early Head Start, and children at least three years old up to school age (typically five years in most states) are eligible for Head Start. Children from families receiving Temporary Assistance for Needy Families (TANF) or SSI are categorically eligible. Children who are homeless or in foster care are eligible as well. Additionally, programs are allowed to enroll families whose incomes are below 130 percent of the poverty line, although the enrollment of these families are capped at 35 percent of participants.

Supplemental Nutrition Assistance Program (SNAP): This program is also known as food stamps and provides vouchers that can be exchanged for food. SNAP is available to individuals below state-specified income levels. Eligibility for SNAP depends on household income, housing expenses, and child care expenses. Some states also have asset tests. Note that the income eligibility rules described on the federal government's benefits website are not always correct because they do not account for the fact that states sometimes use broad based categorical eligibility rules to extend eligibility beyond federal limits.

Free of Reduced Price School Meals:This program is also known as the School Breakfast Program and National School Lunch Program. Both programs are federally assisted meal programs operating in public and nonprofit private schools and residential child care institutions. They provide low-cost or no-cost breakfasts and lunches to children every school day. The maximum income for eligibility is 185 percent of the FPL. Children also gain categorical eligibility for free school lunch and breakfast if they are in a family that receives SNAP benefits or TANF cash assistance. In addition, all children at high-poverty schools ('CEP') designated by the U.S. The Department of Agriculture receives school meals at no charge. Note that CLIFF does not account for CEP schools when determining eligibility for SLP and NSLP.

The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): WIC provides supplemental foods, health care referrals, and nutrition education for low-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children up to age five who are found to be at nutritional risk. WIC provides vouchers for specific types of foods - such as whole-grain bread, baby food, infant formula, and milk - as well as separate 'cash value vouchers' that can be used to buy fruits and vegetables. WIC also provides infant formula to mothers who do not breastfeed. Note that only the value of food is estimated in CLIFF (not the other services provided). To be eligible for WIC, applicants must either have gross household income at or below 185 percent of the federal poverty level or be categorically eligible. An applicant who already receives SNAP (formerly food stamps), Medicaid, or Temporary Assistance for Needy Families cash assistance is categorically eligible for WIC. In addition to passing income tests, women are eligible while they are pregnant and for six months after the birth of the infant. Women who continue to breastfeed their infants beyond six months are eligible for WIC benefits for up to a year after childbirth. Children may be eligible up to their fifth birthday.

Housing Voucher: The Housing Choice Voucher Program (Section 8). Section 8 provides vouchers which reduce the cost of rent. The voucher is paid to the landlord directly by the local public housing agency on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. To be income-eligible, a family must have adjusted income below 80 percent of the median income for the county or metropolitan area where the family lives. Adjusted income reduces a family's gross income by (1) dependent deduction, (2) elderly/disabled deduction, (3) unreimbursed medical expenses of any elderly family or disabled family, and (4) any reasonable child care expenses necessary to enable a member of the family to work or to further his or her education. The family is 'continuously assisted' under the 1937 Housing Act, meaning the family is already receiving assistance under any 1937 Housing Act program-for example, public housing-when the family is admitted to the voucher program. Once admitted to the program, the family does not undergo any further income eligibility tests. Note that the Section 8 Housing Voucher program has a waitlist in many cities. In Connecticut the value of the housing voucher will include the Rental Assistance Program if that program is checked. Follow the link to see more information about the Earned Income Disallowance work incentive.

Health Insurance Marketplace Subsidies/ACA: Health insurance marketplace subsidies (also referred to as 'ACA' in CLIFF) provide subsidies for health insurance for those with incomes between 100 percent and 400 percent of the FPL. People pay a portion of their income toward health insurance. The amount of the individual responsibility portion varies by income level, age, and family size. The difference between the individual responsibility portion and the full cost of health insurance purchased on the health exchange is the estimated value of the program.

Medicaid and Children's Health Insurance Program Medicaid is a federal and state program that helps with medical costs for some people with limited income and resources. CHIP provides health coverage to eligible children, through both Medicaid and separate CHIP programs. Income-eligibility thresholds vary by state and depend on whether adults have dependents. There are no work requirements for Medicaid.

Supplemental Security Income (SSI): SSI is a federally funded program that provides cash assistance to low-income individuals with disabilities that prevent them from engaging in “substantial gainful activity” (SGA), in other words, generating income, as diagnosed by medical professionals. Similar to TANF, while many individuals on SSI do not work at all and therefore receive the federally-determined (and updated based on inflation) maximum SSI benefit amount, any earnings that SSI recipients receive lowers their SSI benefit amount. Contact the Work Incentives Planning and Assistance Program in your state to find out precise details on how earnings affect SSI and other public benefits. In some states, the state supplement is distributed through an EBT card. You may also be eligible to establish an ABLE savings account that can help you remain eligible for public benefits even if your assets increase.

Social Security's Disability Insurance (SSDI): Social Security's Disability Insurance Benefits are federally funded and administered by the U.S. Social Security Administration (SSA). Social Security pays disability benefits to certain family members if they worked long enough, paid Social Security taxes, and have a medical condition that prevents them from working for at least 12 months or is expected to end in death. Without these work incentives, an individual receiving SSDI must earn less than the monthly federal benefit rate (not counting other household members income) to remain eligible. Contact the Work Incentives Planning and Assistance Program in your state to find out precise details about on how earnings affect SSDI and other public benefits.You may also be eligible to establish an ABLE savings account that can help you remain eligible for public benefits even if your assets increase.

Earned Income Tax Credit (EITC): Both federal and state EITC calculations are included in CLIFF. The Federal EITC is a benefit for working people with low to moderate income. Workers receive a credit equal to a percentage of their earned income up to a maximum. After the credit reaches the maximum, it remains flat until earnings reach the phaseout point. Both the credit rate and the credit maximum vary by family size. To qualify, workers must meet certain requirements and file a tax return, even if they do not owe any taxes or are not required to file. The Federal EITC is a refundable tax credit; it reduces the amount of tax owed and may result in a refund. The income eligibility threshold varies according to the number of dependents and tax filing status. Workers who do not claim eligible children must be at least age 25 but under age 65. If a worker is married filing a joint return, either the worker or spouse must meet this age requirement. Those who are married and filing separately are not eligible. In 2020, 28 states and the District of Columbia offered an additional State EITC. States typically set their credits as a percentage of the Federal EITC. However, unlike the federal credit, some State EITCs are not refundable.

Child Tax Credit (CTC): Both federal and state CTC calculations are included in CLIFF. The Federal CTC is a partially refundable tax credit available to parents with qualifying dependents under the age of 17. In 2020, a family that earned less than $2,500 was ineligible for the credit. Those with incomes above $480,000 ($280,000 for singles and household heads) receive no CTC. Working families can receive a refund equal to 15 percent of their earnings above $2,500. This refund can be worth up to $1,400 per child. Families can claim a maximum tax credit of $2,000. The Federal CTC starts to phase out at income levels of $400,000 ($200,000 for single or head-of-household filers). The America Rescue Plan significantly temporarily expanded the Federal CTC credit in multiple ways. See the Policy Rules Database Technical Manual for more information. As of 2021, six U.S. states-California, Colorado, Idaho, New York, North Carolina, and Oklahoma-have their own child tax credits. States' CTC are typically structured either as a lump-sum payment for each eligible child or as a fixed percent of the federal credit. New York has a combination of both approaches. Some states' CTCs are nonrefundable.

Federal Child and Dependent Care Tax Credit (CDCTC): The Federal CDCTC is a nonrefundable tax credit that reduces a taxpayer's federal income tax liability based on child- and dependent-care expenses incurred. Taxpayers must have earned income and meet a variety of eligibility criteria including incurring qualifying child- and dependent-care expenses for a qualifying individual. A qualifying individual for the Federal CDCTC is either (1) the taxpayer's dependent child under 13 years of age, or (2) the taxpayer's spouse or dependent who is incapable of caring for himself or herself. A taxpayer must have earned income to claim the credit. For married couples, both spouses must have earnings unless one is a student or incapable of self-care. There is no upper income eligibility threshold-taxpayers at all income levels can claim the Federal CDCTC. Many lower-income taxpayers receive little or no credit since the credit is nonrefundable. As of 2020, 28 states and the District of Columbia had enacted their own State CDCTCs, the structure of which varies significantly by state. Some states have set their credits as a share of the federal credit while other states calculate it as a share of expenses. In some states, the credit is fully refundable, while in others it is nonrefundable.

Programs not included in CLIFF tools: The following programs are not currently included: Medicare, city-funded programs, and programs available to specific populations (such as Veterans).


The Policy Rules Database (PRD) gathers current as well as historical information about public assistance programs and tax credits. To see the years for which we have data available for a specific state, select the state and click 'Update Charts'. Data are available for download in RData format via our GitHub. Note, all CLIFF Tools (including the PRD Dashboard) only use the most recent data available.