Bridge to Prosperity Cliff Pilot Featured in the Boston Globe!
We’re thankful to the Boston Globe for shedding light on the Cliff Effect through the story of Ariela Reynoso. Her story is powerful but sadly not uncommon. These barriers exist for working families across the state—keeping individuals in lower paying jobs while driving instability and turnover in the workforce ecosystem. If you have yet to read the article in the Boston Globe, we highly recommend it.
This piece further illustrates how the cliff effect impacts Massachusetts families like Ariela’s, and how the Bridge to Prosperity Pilot will remove barriers to economic mobility.
“The East Boston single mother already works three jobs, but a higher income would make her ineligible for thousands of dollars in public benefits she receives each month in food subsidies, child care vouchers, and rental assistance.”
Ariela is a perfect example of someone facing the unfair struggle of balancing work and navigating the confusing public benefits system. Earning a bit more could disqualify her from essential programs like food subsidies, child care vouchers, and rental assistance, which, despite working three jobs, she still relies on each month to make ends meet.
“Reynoso does not want to depend on that money forever. And at 30 years old, she has no plans to stop working. But earning even a little bit more could mean losing the government support abruptly.”
These sudden losses caused by benefit ineligibility are the core driver of the cliff effect. Individuals are often left with the hard choice of either turning down a promotion or losing benefits that could very well be keeping their family afloat.
“Her income is not enough to live on. But if her earnings rise, Reynoso is in danger of losing the public assistance she receives — a possibility caseworkers have repeatedly warned her about. It keeps her from pursuing a new job or a promotion.”
Not only is this putting families in a tough spot, it is weakening our workforce ecosystem by driving turnover and vacancy in critically in-demand employment sectors such as healthcare, education, and childcare, among others. These jobs should be pathways to financial independence, not a poverty trap.
To address the root of the problem, the “Bridge to Prosperity” pilot program is launching this year in the state’s three largest cities. It aims to help individuals move beyond the cliff effect by offering transitional financial support as they follow their career path.
By offsetting the loss of benefits, the program seeks to gauge how these funds could assist in the transition to financial independence through career advancement.
“We cannot tweak these assistance programs individually, because that may have unintended consequences somewhere else. But this is an opportunity to learn and change the whole system.”
As highlighted by Program Director Hannah Reuter, addressing this complex issue requires a comprehensive approach. The three-year pilot will study the impact of bridge payments, alongside career and financial coaching, on up to 100 participants. Participants will also receive a no-strings-attached $10,000 bonus to further support their long-term financial health.
The ultimate aim is remove barriers to climbing the income ladder while reducing chronic dependence on public benefits. This approach not only promises long-term savings for public funds but also addresses critical workforce shortages in sectors like healthcare and education.
Learn more about the Bridge to Prosperity Pilot Program.
We also want to acknowledge Women’s Money Matters—our coaching partner in Boston—for their invaluable role in supporting Ariela in her journey and empowering women through financial literacy.
Read the full Boston Globe story here.