The resolution proposes an interim study to investigate the "cliff effect" experienced by Nebraska families receiving public assistance. The cliff effect refers to the situation where an increase in income—such as a raise, promotion, or additional work hours—leads to a significant loss of public assistance benefits, including aid to dependent children, Medicaid, or the Supplemental Nutrition Assistance Program. This phenomenon can discourage individuals from pursuing career advancement or increasing their earnings, ultimately affecting workforce participation and long-term economic self-sufficiency. The study aims to analyze these impacts and identify potential strategies or reforms to mitigate the cliff effect, promoting upward mobility while minimizing the immediate loss of assistance.

The resolution designates the Health and Human Services Committee of the Nebraska Legislature to conduct the interim study. Upon completion, the committee is tasked with reporting its findings and recommendations to the Legislative Council or the Legislature, ensuring that the insights gained from the study can inform future policy decisions aimed at supporting families in overcoming the challenges posed by the cliff effect.