(U.S. Senator Ernst and Iowa Governor Kim Reynolds)
U.S. Senator Joni Ernst (R-Iowa) is co-sponsoring a bill, aimed at fixing what's known as the "Cliff Effect." That's when a low income worker gets a raise at work, and loses public aid, because of the extra income. In some cases, such as without child care help, the end result is a big financial burden.
"We shouldn't punish people for wanting to be better, we should allow them to excel and provide for their families," said Ernst during a news conference at the Iowa Capitol in Des Moines Friday.
Senator Ernst says despite over 80-programs and billions of taxpayers dollars spent annually, the federal government fails to address the barriers of self-sufficiency, and sometimes punish self-sufficiency through "Cliff Effects" when they gain employment or get a raise.
She cites a story about a young single mother she met in Lenox, Iowa years ago, who was offered a raise at her job at an assisted living facility, but because of the increase in pay, she no longer qualified for government assistance. The result of taking the pay raise, meant the woman had $200 less in her monthly budget, compared to when she made less, and qualified for assistance. Ernst says to her credit, the young woman chose to take the promotion, and take the financial hit, hoping that it would eventually benefit her career.
Senator Joni Ernst is co-sponsoring a measure (along with Florida Senator Marco Rubio) called the "Empowers Act" -which allows states to apply for a waiver to modernize and reform state programs funded by the federal government.
She says the goal is reduce poverty, promote employment, and reward self-sufficiency. States would receive the same level of funding currently receiving, and would have to re-invest any savings on helping low income families and income individuals.