[Congressional Record Volume 144, Number 144 (Monday, October 12, 1998)]
[Extensions of Remarks]
[Page E2097]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              THE ASSET-BUILDING FOR WORKING AMERICANS ACT

                                 ______
                                 

                        HON. BENNIE G. THOMPSON

                             of mississippi

                    in the house of representatives

                        Monday, October 12, 1998

  Mr. THOMPSON. Mr. Speaker, as you know, there are a variety of 
different manners through which eligibility for public assistance 
programs are limited according to income and resources. Unfortunately, 
these complex procedures often produce unwanted effects. I have 
particular concerns with the manner in which eligibility for public 
assistance programs is affected by savings accrued through the Earned 
Income Tax Credit (EITC). The legislation I will introduce today, the 
``Asset-Building for Working Americans Act,'' will seek to correct 
these problems. While the Asset-Building for Working Americans Act may 
undergo some changes before next year, I hope this original draft will 
stimulate a productive debate and suggestions for possible improvement 
before its reintroduction in the 106th Congress.
  Existing income and resource limitations governing eligibility for 
Supplemental Security Income (SSI), Medicaid, and public housing 
disregard money saved from EITC payments for two months. At the end of 
these two months, working families must spend their EITC payment in 
order to prevent losing their eligibility for these programs. As a 
result, working families may miss the opportunity to build the savings 
needed to accrue enough assets to escape poverty permanently.
  The Asset-Building for Working Americans Act corrects this 
unfortunate situation by adjusting the resource limitations for SSI, 
Medicaid, and public housing to disregard savings made through the EITC 
for 12 months--the same provision governing the eligibility for food 
stamps at the present time. The bill will also encourage states to 
define eligibility for Temporary Aid to Needy Families payments in the 
same manner.
  Permitting families to save their EITC payments for up to a year and 
still remain eligible for these public assistance programs would allow 
low-income working families to live and raise their children in health 
and safety while saving money for long-term security. In effect, 
families could save two EITC payments rather than just one--up to 
$4,304 for a family of three. Once these two annual EITC payments make 
such a family ineligible for public assistance under the new resource 
limitations proposed in my bill, the family would have saved the money 
needed to take good steps towards building a better future, such as 
starting a small business; getting an education; or making a down 
payment towards a first home.
  The Asset-Building for Working Americans Act does not encourage 
increased government handouts or dependence. It will instead encourage 
working Americans to save their EITC payments for the future by 
assuring them of access to the temporary assistance needed at the 
present. The Asset-Building for Working Americans Act is a good first 
step towards encouraging low-income families to look towards tomorrow 
today, and I encourage my colleagues on both sides of the aisle to work 
with me in support of it during the next Congress.

                          ____________________