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119-s-3583119th CongressWALLET

Upward Mobility Act of 2026

Sponsored By: Senator Husted, Jon [R-OH]

In Committee

Summary

Creates a five-year pilot that lets up to five States pool federal antipoverty funds into annual Upward Mobility Grants to redesign benefits and reduce benefit cliffs. The pilot aims to streamline service delivery and boost employment by coordinating supports like child care, housing, nutrition, energy assistance, and skills training.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Limits on outside antipoverty benefits

If enacted, during a State's approved pilot the State would not receive Federal funding for the covered antipoverty programs outside the pilot. Individuals who receive per‑capita direct assistance through the pilot would be ineligible for additional benefits under those same covered programs outside the pilot. Limited‑scope pilots are an exception and may continue to receive Federal funding outside the pilot. The Act preserves exceptions for contingency or emergency funds such as SNAP contingency reserves, TANF contingency funds, and LIHEAP emergency funds.

Emergency benefits for pilot participants

If enacted, the bill would allow federal Secretaries, at a pilot State's request, to use contingency or emergency funds to provide extra SNAP, TANF‑related, or LIHEAP energy help to households receiving per‑capita direct assistance through the pilot during downturns, disasters, or other eligible emergencies. The State must request the funds and these authorities would apply only while the State's pilot runs and during Secretary‑determined eligible periods.

Upward Mobility pilots for states

If enacted, the bill would let the Secretary approve up to five States to run a single 5‑year Upward Mobility pilot. A State would have to apply and explain how it will use the grant to reduce benefit cliffs, help people get jobs, and provide services like child care, housing, nutrition, and skills training. The State application would have to include proposed eligibility rules, any requested waivers, fraud and privacy protections, work requirement plans, and an independent evaluation method. The Secretary would be able to grant limited statutory or regulatory waivers for the pilot, but core protections like civil rights, health and safety, labor standards, environmental rules, and noncitizen benefit restrictions could not be waived.

Pilot grants and admin funding

If enacted, the Secretary would set each State's first-year Upward Mobility Grant equal to the State's prior-year covered amounts adjusted by the change in the Personal Consumption Expenditures price index. Subsequent years would be indexed by the PCE change and adjusted to comply with the Act's per-capita direct assistance rules. Grants would be paid quarterly at 25% each quarter. For limited‑scope pilots, a State could elect a grant equal to 10%–100% of the otherwise calculated amount. Heads of covered federal agencies would also transfer administrative funding to pilot States in proportion to each State's prior-year nonadministrative funding share for the program.

ACF takes on federal functions

If enacted, the Director of the Office of Management and Budget could direct that some functions from covered federal antipoverty agencies move to the Administration for Children and Families (ACF). Personnel, contracts, records, assets, and unexpended balances tied to those functions would move too, and transferred unspent funds would have to be used only for their original purposes. The bill would also preserve existing orders, grants, contracts, licenses, and pending proceedings so they continue after any transfer.

Sponsors & CoSponsors

Sponsor

Husted, Jon [R-OH]

OH • R

Cosponsors

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 1/8/2026

  • Sen. Ernst, Joni [R-IA]

    IA • R

    Sponsored 1/15/2026

Roll Call Votes

No roll call votes available for this bill.

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