The Cliff Effect

In 2015, hundreds of Nebraskans signed our “End the Cliff” online petition in support of the successful passage of LB 81, to lessen the “cliff effect” in our child care assistance program for low income, working families. The prior steep eligibility cliff was a disincentive to workers from accepting a raise or working more hours because a modest increase in earnings resulted in program ineligibility. Creating a smooth transition to economic stability – instead of a cliff – is a smart policy that supports work as a way out of poverty.