Friday, February 24, 2012
Individual Development Accounts (IDAs): Background and Current Legislation for Federal Grant Programs to Help Low-Income Families Save
Specialist in Social Policy
Individual Development Accounts (IDAs) are savings accounts to help low-income families and persons save for specified purposes, usually education, purchase of a home, or to start a business. IDA programs match an individual’s contributions, much like retirement 401(k) accounts. The Assets For Independence (AFI) Act, enacted by Congress in 1998, specifically authorizes IDA demonstration programs. Authorization for the AFI program expired at the end of FY2003, though Congress continued to appropriate money for the program. The Consolidated Appropriation Act, 2012 (P.L. 112-74) provides FY2012 funding of $19.9 million for the AFI program. President Obama’s FY2013 budget would maintain AFI funding at its prior year level, $19.9 million. States are also given authority to use funds from the Temporary Assistance for Needy Families (TANF) block grant to fund IDA program
Date of Report: February 15, 2012
Number of Pages: 8
Order Number: RS22185
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Posted by Penny Hill Press, Inc. at 12:57 PM