HB 5377

Creates the Work Always Pays Act. Provide that a State-administered benefit program shall not reduce benefits by more than $0.50 for each $1.00 increase in a household's earned income. If an increase in earned income results in a reduction of net household resources compared to the level in effect immediately prior to the increase, then the household shall be eligible for a bridge credit. Provides that the amount of the bridge credit shall equal the difference between: (i) the household's net household resources immediately prior to the increase in earned income; and (ii) the household's net household resources after the increase in earned income and corresponding benefit adjustments. Provides that a household that experiences an increase in earned income shall be subject to a 90-day earnings buffer period. Amends the State Finance Act to make a conforming change. Effective January 1, 2027.