The Upward Mobility Act of 2026 establishes a 5-year pilot program allowing up to five states to consolidate federal funding from multiple antipoverty programs—including food assistance, cash welfare, child care, home energy, job training, and housing—into flexible "Upward Mobility Grants" designed to reduce barriers to employment and increase earnings. Participating states would receive waivers from certain federal program requirements, enabling them to restructure eligibility rules and benefit structures while maintaining core protections such as civil rights safeguards, labor standards, and housing program continuity. States must submit detailed applications demonstrating how they will improve work incentives and outcomes, with a priority given to projects that keep marginal tax rates at or below 50 percent and use rigorous research designs to measure results. The program establishes a 90-day application review process through the Department of Health and Human Services, which will oversee independent annual evaluations tracking employment, poverty reduction, and reduced reliance on direct assistance. Administrative functions and resources from existing antipoverty programs will transfer to HHS's Administration for Children and Families, with funding proportional to states' prior program participation.
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