Christopher A. Coons

26/07/2024 | Press release | Archived content

Senators Coons, Brown reintroduce bill to strengthen social safety net for low-income Americans

WASHINGTON - U.S. Senators Chris Coons (D-Del.) and Sherrod Brown (D-Ohio) this week reintroduced the Allowing Steady Savings by Eliminating Tests Act, or ASSET Act, to protect low-income Americans' access to vital benefits and boost their ability to save for the future. Congressman Jimmy Gomez (D-Calif.) introduced companion legislation in the House of Representatives.

The bill would eliminate federal asset limits set on eligibility for the Temporary Assistance for Needy Families (TANF) program, Supplemental Nutrition Assistance Program (SNAP), and the Low-Income Home Energy Assistance Program (LIHEAP) - programs that help low-income families, particularly those with children, meet basic needs like food and heating - and raise the federal asset limit for Supplemental Security Income (SSI) eligibility. The SSI program reduces extreme poverty among the elderly and people with disabilities. Federal law allows individual states the flexibility to determine eligibility for benefits; however, many states continue to impose burdensome asset limits and leave families vulnerable to medical emergencies and unintended expenses.

Asset limits for savings are outdated and often set as low as $1,000 or $2,000, limiting a family's preparedness for a medical emergency or unanticipated expense. Nine states have eliminated TANF asset limits; 37 states and the District of Columbia have eliminated SNAP asset tests; and 39 states have no LIHEAP asset test. While asset limits are part of the SSI program design, limits have not been raised nor adjusted for inflation since 1989. This bill would raise SSI asset limits from $2,000 to $10,000 for an individual and $3,000 to $20,000 for a couple, indexing thresholds to inflation.

"Asset limits for public assistance programs need to be updated to ensure that low-income families, elderly Americans, and those with disabilities get the support they need," said Senator Coons. "Current eligibility requirements are counterproductive and diminish our social safety net, as they penalize families for building their savings. That's why I'm proud to reintroduce the ASSET Act with Senator Brown and Congressman Gomez. It removes limits placed on savings and unnecessary red tape in public assistance programs, greatly improving financial security for many families across Delaware and the nation."

"These arbitrary, outdated restrictions make no sense," said Senator Brown. "Ohioans shouldn't be punished for saving a little extra money in case of medical emergencies or unexpected expenses. It's long past time we end these out-of-date government restrictions and allow Ohioans to save for emergencies."

"In a country where most people can't afford a surprise $500 medical or auto repair bill, the ASSET Act represents a new, transformative vision for public assistance, in which people can still access lifesaving programs like SNAP and TANF even if they have a savings account valued over $2,000," said Congressman Gomez. "Our bill eliminates these limits and allows families to save money while receiving federal benefits."

In addition to Senators Coons and Brown, the ASSET Act is cosponsored by Senators Tim Kaine (D-Va.), Brian Schatz (D-Hawaii), Chris Van Hollen (D-Md.), Bob Casey (D-Pa.), Peter Welch (D-Vt.), Cory Booker (D-N.J.), Jack Reed (D-R.I.), and Tammy Baldwin (D-Wis.).

The bill is endorsed by Prosperity Now, St. Mary's Center for Women and Children, the National Low Income Housing Coalition, Center for Law and Social Policy, Food Research & Action Center, The Arc, UnidosUS, Delaware Community Legal Aid Society, REACH Riverside, Metropolitan Wilmington Urban League, Food Bank of Delaware, United Way of Delaware, Grantmakers in the Arts, NETWORK Lobby for Catholic Social Justice, Alliance to End Hunger, Bread for the World, and Americans for the Arts.

The bill text is available here.

The one-pager is available here.