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Tennessee Proposes Gradual Benefits Cut to Boost Jobs

6/1/2025

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Summary

Story summary

Tennessee's welfare system traps low-income individuals in "welfare cliffs," where earning more can lead to a surprising drop in take-home pay due to benefit cuts. This discourages job advancement. However, a proposed solution—gradually reducing benefits as income increases—could empower individuals to pursue better opportunities, with funding and a pilot program already in place to make it happen.

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Story summary

Tennessee's welfare system traps low-income individuals in "welfare cliffs," where earning more can lead to a surprising drop in take-home pay due to benefit cuts. This discourages job advancement. However, a proposed solution—gradually reducing benefits as income increases—could empower individuals to pursue better opportunities, with funding and a pilot program already in place to make it happen.