Ohio Department of Job and Family Services (ODJFS) Director Matt Damschroder announced a change to Ohio’s Supplemental Nutrition Assistance Program (SNAP) that creates a sliding scale to ease the transition off benefits. The change was approved by the Joint Committee on Agency Rule Review in June and went into effect last week.
“Fear of losing food benefits can be a deterrent to taking a new job, working more hours, or even accepting a promotion,” Damschroder said. “Instead of an all-or-nothing approach, we are creating a sliding scale that encourages people to earn more by slowly reducing their benefits as their income grows. This provides an incentive to accept promotions and pay raises knowing they won’t immediately lose benefits.” The change addresses an issue known as the benefits cliff.
The benefits cliff, which has been identified by employers as a barrier to growing their workforce, occurs when someone chooses not to accept additional work hours, increases in pay, or promotions because it pushes them over the income limitations for programs like SNAP. The result is that a pay raise may actually lead to a net loss in actual income due to losing public assistance. Previously, SNAP was only available to those earning 130% of the federal poverty level (FPL).
Beginning last week, ODJFS is adding tiered eligibility for those with income above the 130% threshold. As a recipient’s income approaches 200% FPL, the amount of monthly SNAP benefits gradually decreases, creating an offramp from benefits instead of a cliff.