Rep. Cox Introduces Bill To Counter Safety Net Cuts Pushed By Trump Administration

savings in jars
February 11, 2020
Press Release
Nixing or raising asset limits would promote saving and wealth building
Today, U.S. Representatives TJ Cox (CA-21) introduced the Allowing Steady Savings by Eliminating Tests, or ASSET Act with Reps. Kim Schrier, M.D. (WA-8), and Jimmy Gomez (CA-34). This bill has the potential to lift more families out of poverty and encourage working families to save money and build wealth by eliminating asset limits as a means of eligibility for three vital public assistance programs and raise asset limits for a fourth program. U.S. Senators Chris Coons (DE) and Sherrod Brown (OH) introduced companion legislation in the Senate today. 
 
The bill presents an alternative vision for vital public assistance programs. Rather than shredding the safety net by imposing new bureaucratic hurdles for families, as proposed by President Trump in his budget released this week, the ASSET Act would increase the financial security of low-income families by helping them save for the future and move towards self-sufficiency. 
  
The Temporary Assistance for Needy Families (TANF) program, Supplemental Nutrition Assistance Program (SNAP), and Low-Income Home Energy Assistance Program (LIHEAP) help low-income families, particularly those with children, meet basic needs like food and heating. However, currently, these public assistance programs limit eligibility for benefits on the basis of not only income, but the assets of a family, such as savings and other resources. Asset limits for savings are outdated and often set as low as $1,000 or $2,000, limiting a family’s preparedness for a medical emergency or unanticipated expense. The ASSET Act would eliminate these savings penalties, reducing administrative costs and resulting in a consistent policy across the country. 
  
The Supplemental Security Income (SSI) program reduces extreme poverty among the elderly and people with disabilities. While asset limits are part of the SSI program design, limits have not been raised or even adjusted for inflation since 1989. The ASSET Act raises SSI asset limits from $2,000 to $10,000 for an individual and $3,000 to $20,000 for a couple, and indexes those thresholds to inflation. 
 

“Right now, many safety net programs punish working families for saving money. Building wealth is the key to helping kids and families thrive, but the asset limits put on key hunger and heating programs penalize saving for emergencies, education, or retirement. In my time in a Congress and my career in community development, I’ve learned that restrictions like these are what stop many working families from making it into the middle class,” said Rep. Cox. “By eliminating these asset limits, the ASSET Act will allow Central Valley families to save for a home of their own without risking their access to vital programs that help them make ends meet. This bill makes anti-poverty programs do what they’re actually supposed to do: Lift working families out of poverty.”  

“Asset limits for public assistance programs are outdated. You shouldn’t have to lose your car to get help affording food. The ASSET Act strikes the right balance between giving families the opportunity to build their savings while also still receiving critical benefits to keep everyone fed with healthy food and the heat on,” said Rep. Kim Schrier, M.D.

"Programs like TANF and SNAP are critical components to our country's social safety net system," said Rep. Jimmy Gomez. "Yet all too often, burdensome asset limits hinder the ability to help low-income Americans with the resources needed to lift themselves out of poverty. The ASSET Act not only eliminates these limits, but it also encourages working families and individuals to prioritize their own economic development without the fear of penalties that could cost them their livelihoods.”

The ASSET Act is endorsed by the Alliance to End Hunger, Bread for the World, Center for Law and Social Policy (CLASP), Children’s HealthWatch, Coalition on Human Needs, Food Research and Action Center (FRAC), First Focus Campaign for Children, National Low Income Housing Coalition, National Women’s Law Center, Prosperity Now, UnidosUS, and the Leadership Conference on Civil and Human Rights. 

The bill text is available here 

A bill summary and testimonials from supporting human services organizations are available here.

Issues: 
Education, Culture