The "Upward Mobility Act of 2026" establishes a pilot program to allow up to five states to consolidate federal funding from various antipoverty programs into Upward Mobility Grants . The primary goals are to streamline service delivery, reduce inconsistent eligibility requirements and "benefit cliffs," and promote upward mobility through improved employment outcomes. States participating in the five-year pilot projects will receive consolidated funding from programs such as the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Child Care and Development Block Grants, Low-Income Home Energy Assistance Program (LIHEAP), and various housing assistance programs. To achieve these objectives, the Secretary of Health and Human Services may grant states waivers from existing statutory and regulatory requirements related to eligibility, program design, and funding allocation. However, waivers cannot undermine program goals, civil rights, health and safety, labor standards, environmental protection, restrictions on non-citizens, religious freedom, or maintenance of effort requirements. Funds specifically designated for housing programs must continue to be provided to the same eligible local entities or recipients as under current law. States must submit detailed applications outlining how they will achieve antipoverty objectives, ensure program integrity, and engage local entities. Applications must also describe how they will implement a work requirement for direct assistance recipients, similar to existing SNAP requirements. A key component of the application is a plan for an independent, third-party evaluation to measure improvements in upward mobility measures , including Marginal Effective Tax Rates, participant employment outcomes, reduction in per-capita direct assistance, and poverty reduction. The Secretary will prioritize applications that propose program designs limiting the average Marginal Effective Tax Rate to not more than 50 percent and those projecting the greatest improvements in upward mobility. Rigorous evaluation methodologies, such as random assignment, are also a priority for approval. Fiscal savings generated by improved upward mobility outcomes can be reinvested by states into program operations, infrastructure, or a state reserve fund for emergencies. Finally, the bill includes provisions for the transfer of administrative functions related to these consolidated programs from various federal agencies to the Administration for Children and Families within the Department of Health and Human Services. This aims to centralize oversight and administration of the new grant program. Existing legal documents and ongoing proceedings related to these functions will remain in effect during the transition period.