How STEP Helps Working Families Move Forward Without Falling Behind
New pilot provides crucial supports for today’s workers
Across Central Texas, many families are working hard but still struggling to cover basic household expenses. These households are known as ALICE, which stands for Asset-Limited, Income-Constrained, Employed. Although they are employed, ALICE workers do not earn enough to meet the real cost of living. Expenses like housing, food, transportation, and health care can quickly outpace wages, making financial stability difficult even as people advance in their careers. For households with children, these challenges are often compounded by the high cost of child care.
As ALICE households work to increase their income, they face another significant barrier: the benefits cliff. The benefits cliff happens when even modest income increases trigger the loss of public benefits like child care assistance, SNAP, or housing support. These losses in support often happen before wages are high enough to make up the difference–in other words, the value of the new wage is less than the value of the benefits lost. The benefits cliff leaves families with fewer resources at the very moment they are trying to move forward, and it actively discourages workers from seeking promotions or higher wage opportunities.
To respond to this challenge, United Way for Greater Austin launched STEP (Support for Thriving Employees Program) in April 2026.
Who STEP Supports
The STEP pilot focuses on employees earning approximately $15-$25 per hour, a wage range that represents ALICE households and is where benefits cliffs are most likely to occur. Many workers in this range are advancing in their careers but may experience unintended financial setbacks as wages increase, a challenge Community Advisor Andromeda Vega described as stemming from “critical gaps in support for working families.”
STEP targets these gaps by supporting workers as their wages grow while also helping employers retain and strengthen their workforce.
What STEP Offers
STEP provides wraparound support for eligible employees during a six‑month enrollment period, including:
- One‑on‑one support to review needs and connect to help
- Referrals to community resources for transportation, food, utilities, health services, and more
- Public assistance guidance to understand how income changes may affect public benefits
- Financial coaching for budgeting, planning, and preparing for change
- An emergency fund for unexpected needs
- Child care scholarships to help cover costs during transitions
- Child care navigation support to find care that fits schedules and budgets
In addition to participant support, STEP also provides education for employer partners on the benefits cliff, the challenges ALICE workers face, and strategies to support them.
Why Step Matters
STEP strengthens stability, confidence, and opportunity for ALICE families as they move forward in their careers. When families have reliable support, they are better positioned to plan ahead, pursue career advancement, and maintain momentum at work.
STEP Community Advisor Dominique shared, “When employees feel more stable at home, they can focus better at work and be more productive. STEP is a valuable program that supports both families and employers by addressing real‑life challenges.”
By focusing on stability at critical points, STEP encourages continued career advancement and stronger outcomes for both workers and employers.
Christopher Rios of Wells Fargo, a funding partner for the STEP pilot, highlighted the importance of this support: “For many working families, career advancement can come with an unexpected financial cliff where increased income also means the loss of benefits that once provided critical stability. At Wells Fargo, we understand how important it is to build strong financial foundations, and programs like STEP help do exactly that by offering financial coaching, child care scholarships, and emergency assistance that empower employees to navigate transitions, strengthen their financial resilience, and stay focused on long-term career growth.”
Employer Partnerships
STEP launched in partnership with Lone Star Circle of Care and TouchPoint Support Services. Employer partners connect eligible employees to STEP through referrals and provide insight into program design and effectiveness.
Yolanda Holland Walker, Vice President of Culture, Opportunity, and Inclusion at TouchPoint Support Services, shared, “One of the key challenges I’ve seen is how the ‘benefits cliff’ can unintentionally limit associate engagement and growth… associates feel like they have to choose between advancing their career or maintaining the stability they rely on for their families.”
She also noted that a program like STEP is worth the investment. “When our associates feel stable and supported, they are more likely to stay, perform well, and grow within our organization. We’re not only supporting our current workforce, but also helping build a stronger, more sustainable pipeline for the future. It aligns with our commitment to investing in our people while addressing a real barrier that affects both our associates and our business.”
Part of a Larger Strategy
STEP is part of United Way for Greater Austin’s Family‑Sustaining Income initiative and supports our North Star Goal of 70% of households earning above family‑sustaining income by 2030. As a pilot, STEP allows us to learn what types of support are most effective, how long they’re needed, and where current systems fall short.
These lessons will inform future programs, partnerships, and broader efforts to ensure working families are supported long enough to reach lasting stability.
For more information about the STEP pilot, contact Lexy Largent, Senior Program Manager for Economic Advancement, at lexy.largent@uwatx.org.