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Local United Ways are uniquely positioned to see what’s really happening in their communities. Through Community Needs Assessments, ALICE data, and 211 call trends, they maintain a real-time pulse on the pressures facing working families. Increasingly, that data points to one common challenge: benefit cliffs.

A benefit cliff occurs when a modest increase in income triggers a sudden loss of public benefits—such as child care assistance, food support, or health coverage—sometimes leaving a family financially worse off than before. While this is often framed as a human services issue, Local United Ways see firsthand that it is also a workforce and economic issue impacting employers, nonprofits, and the broader community.

Through PA 211 data, we hear from working adults who have accepted additional hours or a promotion only to face higher child care costs, reduced food assistance, or increased health premiums. Through ALICE research, we see households earning above the poverty line but still unable to afford basic necessities. Through Community Needs Assessments, we hear employers describe recruitment and retention challenges tied directly to financial instability. When advancement creates risk instead of opportunity, leadership pipelines shrink, turnover rises, and workforce participation declines.

This issue is especially urgent in Pennsylvania—one of the oldest states in the nation. With an aging population and tight labor market, our economy depends on full participation from working-age adults. Communities cannot afford systems that unintentionally discourage advancement or sideline willing workers.

Local United Ways are not only identifying this challenge—they are positioned to lead solutions. By partnering with lawmakers, local nonprofits, workforce boards, and businesses, they can help design local programs that provide transitional supports, embed financial coaching into career pathways, and align employer benefits with public policy realities. At the same time, United Ways can advocate for system-level reforms—such as gradual benefit phase-outs, coordinated eligibility policies, and refundable state tax credits.

Understanding benefit cliffs through the lens of local data strengthens our work. Acting on that understanding through community programs and policy change strengthens our communities. When families can pursue advancement without destabilizing their households, employers retain talent, nonprofits see reduced crisis demand, and Pennsylvania’s economy grows stronger for the long term.