Children's Savings Accounts Offer Parents Plenty Of Reasons To Understand and Invest in Tuition Yearly Act or the CSA OPPORTUNITY Act
This bill excludes the value of certain children's savings accounts, provided they meet specified requirements, when determining eligibility for particular means-tested federal programs.
To be excluded, the savings account must be created as part of a program organized by a government, nonprofit, school district, or college or university and meet other administrative criteria. Furthermore, proceeds of the account may only be used for postsecondary educational expenses, the purchase of a first home, or costs associated with starting a business once the individual receives a secondary school diploma or equivalent.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8204 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8204
To amend the Social Security Act, the Food and Nutrition Act of 2008,
and the Low-Income Home Energy Assistance Act of 1981 to require that
the value of children's savings accounts be disregarded for the purpose
of determining eligibility to receive benefits under such Acts, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 11, 2020
Mr. Cartwright (for himself, Ms. Norton, and Mr. Grijalva) introduced
the following bill; which was referred to the Committee on Ways and
Means, and in addition to the Committees on Agriculture, Energy and
Commerce, and Education and Labor, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Social Security Act, the Food and Nutrition Act of 2008,
and the Low-Income Home Energy Assistance Act of 1981 to require that
the value of children's savings accounts be disregarded for the purpose
of determining eligibility to receive benefits under such Acts, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Children's Savings Accounts Offer
Parents Plenty Of Reasons To Understand and Invest in Tuition Yearly
Act'' or the ``CSA OPPORTUNITY Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Children's savings account program.--The term
``children's savings account program'' refers to a program
created or organized by a State, local, or Federal Government,
501(c)(3) nonprofit organization, a school district, or a
college or university for the purpose of creating children's
savings accounts.
(2) Children's savings account.--The term ``children's
savings account'' means a savings or investment account or
trust created as part of a children's savings account program
exclusively for the purpose of paying the qualified expenses of
only individuals, who, when the account is created, have not
attained 18 years of age, provided that it has the following
requirements:
(A) If a savings or investment account is created--
(i) the account is held in a federally
insured financial institution, or a State-
insured financial institution if a federally
insured financial institution is not available,
or in an investment account by a custodian or
third-party owner on behalf of the individuals,
if the custodian or third-party owner is a
State, local, or Federal Government, 501(c)(3)
nonprofit organization, a school district, or a
college or university,
(ii) the assets of the account will not be
commingled with other property except in a
common children's savings account, trust fund,
or other common investment fund, and
(iii) any amount in the account that is
attributable to a seed deposit, matched
deposit, or other incentive provided by the
children's savings account program may be paid
or distributed from the account only for the
purpose of paying qualified expenses of the
individual.
(B) If a trust is created or organized, the written
governing instrument creating the trust contains the
following requirements:
(i) The trust is created on behalf of the
individuals, and the trustee is a State, local,
or Federal Government, 501(c)(3) nonprofit
organization, a school district, or a college
or university.
(ii) The assets of the trust will be
invested in accordance with the direction of
the trustee.
(iii) The assets of the trust will not be
commingled with other property except in a
common trust fund or common investment fund.
(iv) Any amount in the trust that is
attributable to a seed deposit, matched
deposit, or other children's savings account
program incentive may be paid or distributed
from the trust only for the purpose of paying
qualified expenses of the individual.
(3) Qualified expenses.--The term ``qualified expenses''
means, with respect to an individual, expenses that are--
(A) incurred after the individual receives a
secondary school diploma or its recognized equivalent,
and
(B) for--
(i) postsecondary educational expenses (as
defined in section 529 of the Internal Revenue
Code of 1986) of the individual,
(ii) the purchase of a first home by the
individual, or
(iii) the capitalization of a business
owned by the individual.
TITLE I--AMENDMENTS TO THE SOCIAL SECURITY ACT
SEC. 101. CHILDREN'S SAVINGS ACCOUNT REQUIRED TO BE DISREGARDED UNDER
THE TANF PROGRAM.
(a) In General.--Section 408(a)(13) of the Social Security Act (42
U.S.C. 608(a)), as added by section 101(a) of this Act, is amended--
(1) in the heading, by inserting ``, and value of a
children's savings account'' after ``program''; and
(2) by inserting after ``1986)'' the following: ``and the
value of any children's savings account (as defined in section
2 of the CSA OPPORTUNITY Act)''.
(b) Penalty for Noncompliance.--Section 409(a)(17) of such Act (42
U.S.C. 609(a)(17)), as added by section 101(b)(1) of this Act, is
amended in the paragraph heading, by inserting ``or value of a
children's savings account'' after ``program''.
SEC. 102. EXCLUSION OF CHILDREN'S SAVINGS ACCOUNT FROM RESOURCES UNDER
THE SSI PROGRAM.
(a) In General.--Section 1613(a) of the Social Security Act (42
U.S.C. 1382b(a)), as amended by section 102 of this Act, is amended--
(1) by striking ``and'' at the end of paragraph (17);
(2) by striking the period at the end of paragraph (18) and
inserting ``; and''; and
(3) by inserting after paragraph (18) the following:
``(19) any children's savings account (as defined in
section 2 of the CSA OPPORTUNITY Act), including accrued
interest or other earnings thereon.''.
(b) Conforming Amendment.--Section 1613(e)(5) of such Act (42
U.S.C. 1382b(e)(5)) is amended by inserting ``of this Act or section 2
of the CSA OPPORTUNITY Act'' before the period.
TITLE II--AMENDMENT TO THE FOOD AND NUTRITION ACT OF 2008
SEC. 201. EXCLUSION OF CHILDREN'S SAVINGS ACCOUNTS FROM RESOURCES UNDER
THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.
Section 5(g) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(g)) is amended by adding at the end the following:
``(9) Exclusion of children's savings accounts from
allowable financial resources.--
``(A) Exclusion.--The Secretary shall exclude from
financial resources under this subsection the value of
funds in any children's savings account.
``(B) Children's savings account.--For purposes of
subparagraph (A), the term `children's savings account'
has the meaning given such term in section 2 of the CSA
OPPORTUNITY Act.''.
TITLE III--AMENDMENT TO LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 1981
SEC. 301. EXCLUSION OF CERTAIN ACCOUNTS FROM CALCULATION UNDER THE LOW-
INCOME HOME ENERGY ASSISTANCE PROGRAM.
Section 2605(f) of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8624(f)) is amended by adding at the end the following:
``(3) Exclusion of Certain Accounts From Calculation.--
``(A) Exclusion.--The determination of the income or assets
of a household for purposes of eligibility under this section
shall be made without regard to the value of funds in any
children's savings account.
``(B) Children's savings account.--For purposes of
subparagraph (A), the term `children's savings account' has the
meaning given such term in section 2 of the CSA OPPORTUNITY
Act.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Energy and Commerce, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Energy and Commerce, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Energy and Commerce, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Energy and Commerce, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Nutrition, Oversight, and Department Operations.
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