Many low-income Hoosiers are turning down job promotions, small pay increases or passing up educational opportunities because their family may be at risk for losing government assistance. This session, I am working to ensure individuals can take on these higher-paying positions without worrying about losing certain benefits by modifying the Temporary Assistance for Needy Families program income requirements.
In November 2019, 5,448 families were receiving TANF benefits. Just a year later, 8,410 families are currently receiving assistance because of financial instability related to the pandemic. Indiana has resources to help Hoosiers become financially independent, and one way to do this is by empowering Hoosier workers to earn raises, obtain higher-paying jobs and pursue education or workforce training to qualify for in-demand careers.
Last year, a new law went into effect exempting students' wages from their family's net income if earned through paid internships, apprenticeships or work-based programs. This change allows young Hoosiers the opportunity to explore new careers in some of Indiana's highest-paying industries, without disqualifying their families for certain benefits.
I am co-authoring a bill this year that would build on this new law and address a problem known as the "cliff effect." Currently, if an individual receiving TANF benefits accepts a raise, promotion or change their position for more money, they could be immediately disqualified for state financial assistance, even though they may not be in a significantly better financial situation. This bill would expand the TANF income requirements, so Hoosiers beginning to earn more money through a postsecondary degree, workforce training or apprenticeship program would see a gradual decrease of TANF payments overtime rather than immediately losing out on all benefits at once.
Hoosiers should not have to worry about assistance they need being immediately taken away by saying, "yes," to a job promotion or taking advantage of a great opportunity. I am working on this legislation because empowering Hoosiers to accept promotions, seek out higher-paying jobs and further their careers will lead to more financial stability, and hopefully, have less individuals reliant on government assistance. If you have any questions about this legislation or have any input about how I can better serve our community, please contact my office at H75@iga.in.gov or 317-232-9769.
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State Rep. Cindy Ledbetter (R-Newburgh) represents House District 75,
which includes portions of Pike, Spencer and Warrick counties.
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