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 that would allow for upward mobility without the immediate loss of essential public assistance.

To facilitate this study, the resolution designates the Health and Human Services Committee of the Nebraska Legislature to conduct the research. Upon completion of the study, the committee is tasked with reporting its findings and recommendations to the Legislative Council or the Legislature. This initiative seeks to address the challenges posed by the cliff effect and promote a more supportive environment for families striving for economic independence.