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S244Senate2025-2026 SessionSame asA2497

Study Public Assistance Cliffs

Official title

“Establishes a fiscal cliff task force to conduct a study on fiscal cliffs in the state's public assistance programs and to make recommendations related thereto”

Sponsor Roxanne J. PersaudSD-19+4 co-sponsorsAffects Finance
Status
Senate Floor Calendar
Impact
4/10
Low
Passage
46%

Bill progress

Vetoed via A2497

What's happening

This bill creates a task force to study and recommend solutions to "fiscal cliffs" in New York’s public assistance programs.

Why it matters

  1. Addresses the “benefits cliff” problem. By studying sudden drops in public assistance when recipients’ incomes rise slightly, the bill aims to identify and fix situations where working more or earning a modest raise can actually leave families worse off, discouraging self-sufficiency and upward mobility.

  2. Comprehensive review of aid programs. The task force’s scope covers a wide array of programs—SNAP, Medicaid, housing, child care, tax credits, and more—meaning its recommendations could have ripple effects across nearly every form of public benefit for low- and moderate-income New Yorkers.

  3. Focuses on systemic barriers. By analyzing not just the programs themselves but also factors like asset limits, income disregards, and the interaction with minimum wage laws, the task force could push for fundamental policy shifts to smooth transitions off benefits and reduce poverty traps.

  4. Potential for legislative change and accountability. The task force is required to produce both preliminary and final reports with specific legislative proposals, which increases the likelihood that tangible reforms—rather than just recommendations—might emerge to help affected families.

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Who cares

Headline styles

Study Public Assistance Cliffs

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Roxanne J. Persaud

Senator · Senate District 19

Chair, Social Services

History

  1. Substituted by A2497
  2. Ordered to third reading cal.1458
  3. Committee discharged and committed to rules
  4. Reported and committed to finance
  5. Referred to social services

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A2497Assembly

Study Public Assistance Cliffs

Vetoed · Sponsor Maritza Davila

Impact 4 · LowVetoed

Full text

3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

244

2025-2026 Regular Sessions

IN SENATE (Prefiled)

January 8, 2025

Introduced by Sens. PERSAUD, COONEY, MURRAY, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Social Services

AN ACT establishing a fiscal cliff task force to conduct a study on fiscal cliffs in the state's public assistance programs and to make recommendations related thereto; and providing for the repeal of such provision upon expiration thereof

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. (a) There is hereby established a fiscal cliff task force to study fiscal cliffs in the state's public assistance programs and make recommendations on how to reduce and eliminate such fiscal cliffs. For the purposes of this section, the term "fiscal cliff" shall mean a sudden decrease in public benefits that can occur with a small increase in earnings.

(b) (i) The task force shall consist of nineteen members, each to serve for a term ending December 31, 2027. Such members shall be appointed as follows: two members shall be appointed by the temporary president of the senate; one member shall be appointed by the minority leader of the senate; two members shall be appointed by the speaker of the assembly; one member shall be appointed by the minority leader of the assembly; five members shall be appointed by the governor; three local social services district commissioners or their designees having relevant experience in administering public benefits shall be appointed by the governor, of which one district shall have five million or more inhabitants; the commissioner of the office of temporary and disability assistance or his or her designee; the commissioner of health or his or her designee; the commissioner of taxation and finance or his or her designee; the commissioner of the department of labor or his or her designee; the commissioner of the office of children and family services

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00920-01-5

or his or her designee. Appointments shall be made within sixty days of the effective date of this section. Vacancies in the task force shall be filled in the manner provided for original appointments.

(ii) All appointments shall be coordinated to ensure geographic representation from the entire state.

(iii) The task force shall elect a chair, vice-chair, and other necessary officers from among all appointed members.

(iv) A majority of the members of the task force then in office shall constitute a quorum for the transaction of business or the exercise of any power or function of the task force. An act, determination or decision of the majority of the members present during the presence of a quorum shall be held to be the act, determination, or decision of the task force.

(v) The task force shall meet at least quarterly at the call of the chair. Meetings may be held via teleconference. Special meetings may be called by the chair at the request of a majority of the members of the task force.

(vi) Members of the task force shall receive no compensation for their services but shall be reimbursed for their actual expenses incurred in the performance of their duties in the work of the task force.

(c) The task force shall:

(i) conduct a study on the fiscal cliffs in the state. Such study shall include, but not be limited to: public assistance programs; the supplemental nutrition assistance program (SNAP); the home energy assistance program (HEAP); housing assistance; the child care tax credit and other tax credits; the school tax relief program (STAR) and other real property tax credits and reductions; Medicaid; NY state of health, the official health plan marketplace; child care subsidies tied to income; cash benefits; effective tax rates; and any other program or service provided by the state or any political subdivision thereof which is tied to income;

(ii) study the causes and reasons why fiscal cliffs occur to individuals on public benefits, including but not limited to, the impact of current public assistance programs monetary allotments, asset tests, asset limits, and income disregards, as well as how minimum wage and other earnings may impact those receiving public benefits; and

(iii) recommend ways to reduce and/or eliminate fiscal cliffs including, but not limited to, recommending program and policy modifications, amendments to the law, including but not limited to possible changes in calculating and paying the earned income tax credit or other tax credits, changes to the New York codes, rules and regulations, and any other recommendation the task force deems appropriate.

(d) The task force may, as it deems appropriate, request that studies, surveys, or analyses relating to the task force's powers and duties be performed by any state department, commission, agency or public authority. All state departments, commissions, agencies or public authorities shall provide information and advice in a timely manner and otherwise assist the task force with its work.

(e) The office of temporary and disability assistance shall provide staff services to the task force and such other administrative assistance as may be necessary for the task force to carry out its duties, functions and powers.

(f) The task force shall make a preliminary report to the governor and the legislature of its findings, conclusions, recommendations and activities already undertaken by the task force, not later than January 1, 2027, and a final report of its findings, conclusions, recommendations and activities already undertaken by the task force, not later than September 1, 2027 and shall submit with its reports legislative proposals as it deems necessary to implement its recommendations.

§ 2. This act shall take effect immediately and shall expire three years after it shall have become a law when upon such date the provisions of this act shall be deemed repealed.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act establishing a fiscal cliff task force to conduct a study on fiscal cliffs in the state's public assistance programs and to make recommendations related thereto; and providing for the repeal of such provision upon expiration thereof

Purpose

This bill would establish a fiscal cliff taskforce to conduct a study on fiscal cliffs in the state's public assistance programs and to make recommendations related thereto; and providing for the repeal of such provision upon expiration thereof.

Summary of provisions

This act establishes a fiscal cliff task force consisting of twenty members including two members appointed by the temporary president of the senate, one member appointed by the minority leader of the senate, two members appointed by the speaker of the assembly, one member appointed by the minority leader of the assembly, five members appointed by the governor, three local social services district commissioners appointed by the governor, the commissioner of the office of temporary and disability assistance or his or her designee, the commissioner of health or his or her designee, the commissioner of the department of labor or his or her designee, and the commissioner of the office of children and family services and his or her designee.

The taskforce shall meet at least quarterly at the call of the chair. The taskforce shall conduct a study on the fiscal cliffs in the state including, but not limited to, various public assistance programs, tax credits and other programs or services provided by the state which are tied to income.

The taskforce shall also recommend ways to reduce and or eliminate such fiscal cliffs.

The taskforce shall make a preliminary report to the governor and the legislature of its findings, conclusions, recommendations, and activ- ities already undertaken by the taskforce by January 1, 2026, and a final report by September 1, 2026. The taskforce shall subsequently report legislative proposals as it deems necessary to implement such recommendations.

Justification

Many public assistance programs based on income eligibility inadvertent- ly create a fiscal cliff, where a small increase in their earned income results in a disproportionate decrease in the recipient's benefits. When a person's income level reaches those thresholds, they cannot afford to earn more, whether through additional benefits or salary, because the loss in benefits exceeds their incremental increase in their income. As a result of these fiscal cliffs, New York State spends billions of dollars for public assistance programs that inadvertently trap millions of people in poverty.

These fiscal cliffs affect multiple programs. For example, a three person family loses their eligibility for Medicaid when they earn $30,630, loses their eligibility for SNAP benefits when their earned income exceeds $34, 548, loses eligibility for Home Energy Assistance Program (HEAP) benefits once they earn $55,296, and loses eligibility for childcare when they earn $64,090.

The taskforce created by this legislation would address these issues and make recommendation on strategies and legislation needed to reduce/eliminate these fiscal cliffs.

Legislative history

S. 7830A: Veto No. 65 of 2024 S. 7259-A: Veto No. 62 of 2023

Fiscal impact on the state

No fiscal implications for state or local government.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.