[Congressional Record Volume 151, Number 63 (Friday, May 13, 2005)]
[Extensions of Remarks]
[Pages E971-E972]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 PROVIDE GREATER JOB OPPORTUNITIES FOR LOW-INCOME FAMILIES THROUGH CAR 
                               OWNERSHIP

                                 ______
                                 

                            HON. GWEN MOORE

                              of wisconsin

                    in the house of representatives

                         Thursday, May 12, 2005

  Ms. MOORE of Wisconsin. Mr. Speaker, for many low-income families, 
getting to a job can be even harder than getting hired in the first 
place. Research shows that lack of affordable and reliable 
transportation is a significant barrier to employment. If we want more 
people to work, we need to help make sure that they can get to work. 
Unfortunately, travel to and from a specific workplace on our cities' 
public transportation systems can be time-consuming and even 
practically impossible--especially for those struggling to leave 
welfare.
  Public transit is designed to accommodate 9-to-5 commuters who need 
to get from one city destination to another during the normal workweek. 
But the entry level jobs of low-income workers are increasingly found 
in the faraway plants, warehouses, strip malls, and office parks of 
suburbia. The work schedules of these new hires may include ``off-
hour'' shifts when public transit is unavailable or too unreliable. 
Low-income parents also need to go to job training classes, the 
supermarket, the doctor's office, or to day care to drop off their 
children. These destinations may not be located along public bus or 
train lines.
  Studies show that people are more likely to find steady employment 
and earn a decent wage when they have access to a car. But all too 
often, buying and maintaining a reliable automobile is too expensive 
for families struggling to make ends meet. A recent report by the Annie 
E. Casey Foundation found that one-fourth of families earning $25,000 
or less have no cars.
  In recent years, a number of states and non-profit organizations have 
developed programs to assist the working poor with the purchase of a 
car. Most of these programs receive vehicles donated by the public or 
purchase them wholesale from dealerships. The used cars are repaired to 
good working order and then leased or sold to low-income workers and 
job seekers, usually at a subsidized purchase price. In many cases, 
program operators work with local lending institutions to obtain loans 
for the car purchase while also providing financial education to the 
new owner. In addition to improving access to jobs in far reaching 
suburbs or rural areas, some low-income car ownership initiatives can 
bolster the family's credit for future purchases, such as a home, as 
well as connect these families to a savings institution.
  In order to help develop and expand these low-income car ownership 
efforts, I am introducing the Creating Access to Rides (CAR)

[[Page E972]]

Act. This legislation would establish a 5-year, $50 million grant 
program through which states, localities, and nonprofits could apply 
for funding to strengthen existing low-income car ownership programs or 
create new ones.
  The bill would also facilitate car ownership through the use of 
Individual Development Accounts (IDAs). IDAs are special savings 
accounts for very low-income individuals through which, as an incentive 
to save, a person's contributions to the account are matched by public 
and private funding. States can use funds authorized by a little-
known law called the Assets for Independence Act (AFIA) to match 
participant contributions to IDAs. However, when IDA contributions are 
matched using AFIA funds, withdrawals may be used for only three 
qualified expenses: homeownership, post-secondary education, and 
starting a business. This bill would expand permissible IDA uses under 
AFIA matching rules to include the purchase of a car.

  In addition to AFIA dollars, states can use their Temporary 
Assistance for Needy Families (TANF) funds to match IDA contributions. 
While the purchase of a car is not included in the underlying TANF 
statute as a qualifying IDA expense, the Department of Health and Human 
Services has clarified that states can elect to permit withdrawals for 
car purchases when the participant's IDA is matched with federal TANF 
dollars. However, some states have found that, as a result of choosing 
this option, the IDA can be considered an asset when determining the 
participant's eligibility for other programs such as food stamps.
  This legislation would remove this barrier and allow states to use 
TANF dollars to match IDA savings for a car without the account's 
assets being counted against the participant's eligibility for other 
important programs.
  Mr. Speaker, vehicle ownership is critical to matching the available 
workforce with available jobs. I urge my colleagues to support this 
legislation and enact it in a timely manner so that low-income 
Americans can get behind the wheel, improve their job prospects, and 
gain greater opportunities to provide for their families.

                          ____________________