Bill > S970

This bill establishes a pilot program to help low-income families receiving housing assistance build savings and improve their economic self-sufficiency. The program will allow up to 25 eligible entities (such as public housing agencies and private rental assistance providers) to create interest-bearing escrow accounts for up to 5,000 families whose income is at or below 80% of the area median income. When a participating family increases their earned income, a portion of their rent increase will be automatically deposited into an escrow account. Families can withdraw these funds after 5-7 years, or earlier if they are using the money for self-sufficiency goals, have stopped receiving welfare assistance, or receive approval for early withdrawal. Importantly, the increased income will not count against the family's eligibility for other benefits, providing a financial incentive to increase earnings. The program includes protections ensuring that families cannot be denied housing assistance for choosing to participate or not participate, and requires detailed notification and opt-out options for families. The Department of Housing and Urban Development will study the program's effectiveness over 10 years and has been authorized $5 million for technical assistance and evaluation. The pilot program is designed to test whether this savings approach can help low-income families achieve greater economic independence.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/970/all-info