IL HB5377

State-administered benefit programs (SNAP, TANF, Child Care Assistance, Medicaid, LIHEAP) cannot reduce benefits by more than $0.50 for each $1.00 increase in a household's earned income.

Households experiencing an income increase receive a 90-day earnings buffer period during which benefits remain at pre-increase levels.

A bridge credit program provides 6 months of supplemental payments to households whose net resources still decline despite the benefit reduction cap, covering the difference between pre- and post-increase resources.

Creates the Work Always Pays Bridge Credit Fund in the State treasury to finance bridge credits and administrative costs.

Effective January 1, 2027, with provisions applying only to the extent permitted by federal law where conflicts exist.