Upward Mobility Act of 2026

Bill Number

H.R. 6949

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Social Welfare

Status

Introduced

Latest Action

2026-05-20: Referred to the Subcommittee on Nutrition and Foreign Agriculture.

Last Updated

2026-05-22T08:07:59Z

AI-Generated Summary

Purpose

The Upward Mobility Act of 2026 establishes a five-year pilot program allowing up to five states to consolidate federal funding from various antipoverty programs into single "Upward Mobility Grants." The goal is to streamline services, reduce "benefit cliffs" (sudden drops in aid when income rises, which can discourage work), and promote upward economic mobility by improving employment, earnings, and self-sufficiency among low-income participants. It focuses on objectives like skills training, affordable housing, nutrition access, energy cost reduction, child care, and temporary family support, while maintaining core program goals.

Key Provisions

• Eligible Programs and Funding Consolidation: States can combine funds from programs including the Supplemental Nutrition Assistance Program (SNAP, food aid), Temporary Assistance for Needy Families (TANF, cash aid for families), child care subsidies, Low-Income Home Energy Assistance Program (LIHEAP, utility help), workforce training for displaced workers, and certain housing assistance. Grants are calculated based on a state's prior-year funding, adjusted for inflation using the Personal Consumption Expenditures Price Index, and paid quarterly. For limited-scope pilots (e.g., targeting specific areas or populations), grants can be 10-100% of full amounts.

• Pilot Structure and Duration: Limited to five states for five years. States may opt for full or limited-scope projects. Participants in the pilot cannot receive duplicate benefits from non-pilot versions of these programs, but exceptions allow access to emergency contingency funds during economic downturns, disasters, or health crises (e.g., SNAP, TANF, or LIHEAP reserves).

• Waivers and Flexibility: The Secretary of Health and Human Services (HHS) can waive federal rules on eligibility, program design, operations, and fund use to enable consolidation, but waivers are prohibited for core protections like civil rights, anti-discrimination, health/safety standards, labor laws, environmental rules, citizenship requirements, religious freedoms, funding limits in appropriations acts, maintenance-of-effort rules, or distributions to sub-state entities (e.g., Indian tribes). Housing funds must continue flowing to existing local recipients.

• State Applications and Approval: States submit detailed applications covering project design, waiver requests, eligibility criteria, data privacy/fraud prevention, work requirements, partnerships with nonprofits and local groups, evaluation plans, and use of savings (e.g., for reserves, infrastructure, or work supports). HHS reviews applications within 90 days, prioritizing those limiting "marginal effective tax rates" (the percentage of income gains lost to reduced benefits or taxes, capped at 50%), strong employment outcomes, rigorous evaluation methods (e.g., random assignment or statistical techniques like differences-in-differences), and program integrity. Public comments are solicited for 30 days.

• Work Requirements and Integrity: SNAP's existing work rules (e.g., able-bodied adults without dependents must work or train 20-30 hours weekly) apply to pilot benefit recipients, with adaptations. States must implement fraud prevention, audits, and compliance measures.

• Evaluations and Data: States contract independent third-party evaluators for annual assessments measuring outcomes like reduced marginal effective tax rates, higher earnings/employment/retention rates, lower reliance on aid, reduced marriage penalties (benefit losses from partnering), and poverty drops—compared to pre-pilot baselines and benchmarks. HHS facilitates data sharing across federal agencies.

• Administrative Transfers (Section 3): Shifts relevant functions, personnel, and funds from other agencies (e.g., USDA, HUD) to HHS's Administration for Children and Families for pilot oversight. States receive proportional administrative funding. Existing legal documents, proceedings, and suits continue unaffected, with references updated to HHS.

• Savings Use and Adjustments: States cannot get grant increases for raising per-person aid levels. Savings from improved outcomes must fund program enhancements, like reserves for crises, infrastructure, collaborations, or work supports for employed individuals not in the pilot.

Significant Changes to Existing Law

• Consolidation and Waivers: Introduces flexibility to blend funds and waive rules across siloed programs (e.g., SNAP, TANF), which are typically administered separately by agencies like USDA and HHS—altering eligibility and delivery without changing core funding levels or protections.

• Incentive Structures: Mandates designs to minimize benefit cliffs and marginal effective tax rates, shifting from rigid program rules to outcome-focused pilots that reward employment gains, unlike traditional aid's potential work disincentives.

• Evaluation and Accountability: Requires rigorous, causal evaluations (e.g., experimental or quasi-experimental methods) and work enforcement, expanding beyond standard program reporting.

• Administrative Reorganization: Transfers oversight of antipoverty functions to HHS, centralizing pilot management and potentially streamlining federal coordination, while preserving continuity for ongoing operations.

Potential Impacts

• On Government Agencies: Increases coordination burdens for HHS (e.g., waivers, evaluations, data sharing) and requires transfers from agencies like USDA (SNAP) and HUD (housing), potentially reducing duplication but adding oversight costs. Limited to five states, so national impact is contained.

• On Citizens: Low-income individuals may experience smoother transitions to work via gradual benefit reductions, higher earnings, and supports like child care or training, but could face stricter work rules or gaps if pilots underperform. Emergency fund access mitigates risks during crises.

• On International Relations: No direct impact, as the bill focuses on domestic U.S. programs excluding aid to non-citizens or unlawful residents.

Main Stakeholders Affected

• States and Local Governments: Gain flexibility in fund use and waivers but must meet application, evaluation, and integrity standards; housing recipients (e.g., public agencies) continue unchanged.
• Low-Income Individuals and Families: Primary beneficiaries or participants, potentially seeing improved mobility but subject to work requirements and eligibility shifts.
• Nonprofits, Faith-Based Groups, and Service Providers: Encouraged to partner for case management and services, with opportunities for capacity-building funding.
• Federal Agencies: HHS leads administration; others (e.g., USDA, DOL, HUD) lose some functions/funds for pilot states, affecting program delivery.
• Evaluators and Researchers: Independent third parties contracted for assessments, influencing evidence on welfare reforms.

Notable Legal, Constitutional, or Political Implications

• Legal: Builds on existing waiver authorities (e.g., TANF) but expands them across programs, potentially testing limits on congressional delegation to HHS. Excludes waivers for civil rights, labor, and safety to align with statutes like the Fair Labor Standards Act. Savings provisions and non-duplication rules prevent "double-dipping," upholding appropriations integrity.

• Constitutional: Raises federalism questions by granting states more control over federal funds, but stays within Congress's spending power (Article I, Section 8) via conditional grants. Protections for Indian tribes and non-citizens respect equal protection and sovereignty principles.

• Political: Could spark debate on welfare reform, with pilots testing conservative emphases on work/self-sufficiency against progressive concerns over aid cuts. Success might expand nationally; failure could reinforce status quo. Bipartisan referral to multiple committees (Ways and Means, Financial Services, etc.) signals broad jurisdictional interest, but limited scale minimizes immediate controversy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moore, Blake D. [R-UT-1]

Cosponsors (3)

Rep. Miller, Max L. [R-OH-7], Rep. Taylor, David J. [R-OH-2], Rep. Grothman, Glenn [R-WI-6]

Recent Actions

• 2026-05-20: Referred to the Subcommittee on Nutrition and Foreign Agriculture.
• 2026-01-06: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, Agriculture, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-06: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, Agriculture, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-06: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, Agriculture, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-06: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, Agriculture, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-06: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, Agriculture, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-06: Introduced in House
• 2026-01-06: Introduced in House

Bill Versions

• Upward Mobility Act of 2026 — issued 2026-01-06 — PDF (43 pages)

Related Bills

• S. 3583 (119th Congress)