[Congressional Record Volume 153, Number 82 (Thursday, May 17, 2007)]
[Extensions of Remarks]
[Page E1075]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF THE FINANCIAL SECURITY ACCOUNTS FOR INDIVIDUALS WITH 
                        DISABILITIES ACT OF 2007

                                 ______
                                 

                          HON. ANDER CRENSHAW-

                               of florida

                    in the house of representatives

                         Thursday, May 17, 2007

  Mr. CRENSHAW. Madam Speaker, today, along with several of my 
colleagues, I introduced the Financial Security Accounts for 
Individuals with Disabilities Act of 2007. As we know, the federal 
government gives American families a helping hand in saving for the 
future. Accounts with special tax advantages help people save for 
college, retirement, and other life events. But people with 
disabilities don't always have the same expectations for the future.
  Individuals with disabilities may have very different needs and 
concerns for their long-term care. However, no matter how different the 
needs or the financial demands that face a family, all parents have a 
common interest--to ensure the financial security of their children. 
Although several savings tools exist for all families, increased costs 
for care, long-term security, more flexibility, and the desire to 
foster greater independence for children with disabilities warrant the 
establishment of a new savings instrument.
  Many of you know about typical tax-deferred savings plans--such as a 
``529'' and college tuition plans. These savings tools, which are 
available to all Americans, can't help a family with a child who may 
not go to college. Yet, one could argue that the need for savings and 
planning for the future is even greater for a child with a disability 
because he or she will likely be less able to earn a self-supporting 
income. And may require continued expenditures on medical treatment or 
adaptive equipment.
  Without a new savings tool, parents of children with disabilities 
must choose between turning down the advantages of savings plans 
available to others or risk a hefty penalty if their child cannot use 
the funds according to the account restrictions.
  The Financial Security Accounts for Individuals with Disabilities 
(FSAID) Act of 2007 will provide families of people with physical, 
cognitive, or developmental disabilities access to the savings tools 
that everyone else enjoys. Individuals with disabilities, or their 
families, could create a Financial Security Account (FSA) that accrues 
tax-free interest during the life of the beneficiary. The FSA will help 
families of individuals with disabilities to pay for a variety of 
current and long-term essential expenses including medical care, 
community based support services, education, employment training and 
support, and assistive technology. As adults, beneficiaries can also 
use these accounts to pay for housing and transportation needs.
  FSAs differ from existing savings tools by providing much needed 
flexibility for families and beneficiaries:
  Accounts can be established as easily as a typical savings account, 
without overburdensome paperwork, administrative fees, or on-going 
legal fees;
  Beneficiaries are allowed to control their own financial destinies; 
and if they are unable to serve in this capacity, parents, guardians or 
other designees can serve in this capacity;
  Qualified expenses under the FSAID are purposefully broad to 
accommodate the greater needs of people with disabilities and the 
financial demands of their individual care plan;
  Qualified expenses are not limited to adulthood or retirement age so 
resources can be used whenever they are needed;
  The flexibility in expenses also allows families to save with 
confidence even though they cannot always predict how independent their 
children will become;
  A family who saves money in a traditional account for a child who 
becomes disabled later in life can roll over the funds into an FSA 
without penalty; and
  Unlike some savings instruments, FSA would be created and regulated 
on a federal level so any eligible individual in the United States 
would have access to this savings tool.
  The Financial Security Accounts for Individuals with Disabilities Act 
of 2007 will give families of people with disabilities the ability to 
save for their children's futures just like other American families. 
Today, we are taking the first step toward that realization by giving 
all American families the tools they need to provide for their 
families--no matter what their specialized needs might be.
  A new approach to savings for these families--one that fosters 
ownership, self-control and flexibility--is needed today. I urge my 
colleagues to support this innovative approach to saving for the long-
term, specialized needs of children with disabilities.
  FSAs will bring families the much needed peace of mind by giving them 
the tools to provide for their children and helping ensure that 
children with disabilities are able to live life to the fullest and be 
as productive as possible.
  Our legislation offers hope to families to provide resources that are 
life-enhancing and meaningful and the control necessary to ensure that 
their loved ones obtain essential services. I urge my colleagues to 
support the Financial Security Accounts for Individuals with 
Disabilities Act of 2007.

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