STATEHOUSE (Feb. 12, 2021) – A key House committee passed legislation co-authored by State Rep. Cindy Ledbetter (R-Newburgh) focused on helping Hoosier workers who may decline a pay bump over fear of quickly losing government benefits.
The House Family, Children and Human Affairs Committee approved House Bill 1009 during a meeting in the House Chamber at the Indiana Government Center South Building in Indianapolis. Some low-income workers decline pay raises, even small ones, and promotions because they would quickly lose their government benefits due to income eligibility requirements.
To help address this issue, the legislation would expand income eligibility requirements for the Temporary Assistance For Needy Families program to create a gradual phase-out of assistance as an eligible household's income increases. Under this bill, Ledbetter said more Hoosier workers would be incentivized to take a step forward in their careers and away from government assistance.
"For many low-income workers even the smallest of raises could disqualify them from receiving much-needed benefits, so they turn them down," Ledbetter said. "By implementing a gradual phase out, Hoosiers could slowly adjust to reduced state and federal aid while accepting higher-paying jobs and advancing in their careers."
Ledbetter said this legislation would expand income eligibility requirements for the Temporary Assistance For Needy Families program to 50% of the federal poverty level by 2025. Under current requirements, an eligible families' income needs to fall between 13% and 16% of the federal poverty level, which equates to a gross yearly income of $8,547 for a family of four.
According to Ledbetter, this legislation builds on a 2020 law that took effect in January that exempts dependents' income earned through internships or work-based learning programs from their families' benefits.
House Bill 1009 now heads to the House Ways and Means Committee for further consideration. For more information about this legislation, visit iga.in.gov.
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State Rep. Cindy Ledbetter (R-Newburgh) represents House District 75,
which includes portions of Pike, Spencer and Warrick counties.
Click here to download a high-resolution photo.
