The country seems to be opening back up for some, but for those hardest hit by the pandemic, barriers like asset limits prevent them from getting back on track financially. Public assistance programs such as Temporary Assistance to Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP) and the Low Income Home Energy Assistance Program (LIHEAP) can be essential for families to receive necessary income, adequate nutrition and home energy support. Yet asset limits (also known as savings penalties), not only impose an obstacle to these programs but also to family and children’s savings. Asset limits force low- and middle-income families to make an impossible choice – save for their children’s future or continue to receive public assistance to help put food on the table today.  

This year, members of Congress have reintroduced two bills that would eliminate these barriers. Rep. Matt Cartwright (D-PA-8) has reintroduced the CSA Opportunity Act which would allow families to save for their children’s futures without fear of losing access to public assistance. Additionally, Sens. Chris Coons (D-DE) and Sherrod Brown (D-OH) and Reps. Jimmy Gomez (D-CA-34), Kim Schrier (D-WA-8) and Jahana Hayes (D-CT-5) introduced the ASSET Act, which would eliminate asset limits on TANF, SNAP and LIHEAP and substantially raise limits for Supplemental Security Income.  

Families should never have to choose between what they can provide for their family now and what they can secure for their children tomorrow. So, why are we discouraging families who need public assistance from saving? If we allow families who need public assistance programs to save for their future, they will achieve financial stability much faster. Saving money also helps families to be prepared for financial crises like the pandemic. Removing asset limits would help low- and middle-income families rebuild their savings that were lost during the pandemic.  

Across the country, many states set incredibly low asset limits which make it virtually impossible to have enough savings to help families recover from financial crises, let alone save for their children’s future. For example, families living in Georgia or Pennsylvania must limit their savings and assets to $1,000 so they can keep receiving public assistance. Low asset limits like these restrict families from creating a safety net for themselves or saving for their children’s post-secondary education. Having a college degree can open doors to various career opportunities which bring a family closer to financial stability. Families need to be able to access both public assistance programs and save money in order to provide a better and more secure future for their children.  

Passing the CSA Opportunity Act and the ASSET Act are crucial to ensuring that low-income families never have to make the impossible choice between saving and receiving public assistance. These bills will not only make public assistance more accessible, they will also increase these families’ opportunities for a more financially secure future. To help push for these initiatives, ask your legislators to support the CSA Opportunity Act here and the ASSET Act here!