[Congressional Record Volume 156, Number 114 (Friday, July 30, 2010)]
[Extensions of Remarks]
[Pages E1508-E1509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       IDA PROTECTION ACT OF 2010

                                 ______
                                 

                         HON. LINDA T. SANCHEZ

                             of california

                    in the house of representatives

                         Friday, July 30, 2010

  Ms. LINDA T. SANCHEZ of California. Madam Speaker, today I am 
introducing the ``IDA Protection Act of 2010.'' This bill will help the 
Individual Development Account program weather a tough economic 
climate, so it can continue to help lower income Americans to go to 
college, buy a home, or start a small business.
  IDA accounts are designed to help low income individuals pull 
themselves out of poverty and learn how to manage their family's 
finances. Through a partnership between local government, non-profits, 
and businesses, each dollar someone saves in an IDA account is matched 
at a one or even two to one ratio.
  To participate in this program, an individual must agree to take 
classes on financial literacy and agree to use the proceeds to buy a 
home, start a small business, or pay college tuition. Since the 
program's inception in 1999, more than 86,000 people have opened IDAs, 
many of them opening bank accounts for the first time. These 
individuals have sacrificed to save and thus, increased the standard of 
living for their family.
  Unfortunately, the recent recession has threatened the future of this 
important program. Congress annually appropriates $24 million for IDA 
Accounts, and local non-profits must find private sector matches in 
order to receive a portion of these federal funds. Since Wall Street's 
meltdown shook our economy, the usual corporate partners have not 
maintained their traditional level of IDA donations, and as a result 
much of this $24 million for this year remains unspent.
  This bill would create a bridge for the IDA program to better times. 
It more than doubles

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the program's funding in 2011 and 2012 and waives the private match 
requirement during those two years. Private participation in the IDA 
program is important, and this bill is meant in no way to incentivize 
private business to take its money elsewhere.
  The sad reality though, is that private donors just aren't coming 
through right now. A number of states have eliminated or cut their IDA 
programs in response to this financial crisis. In California, the 
United Way of Los Angeles was recently forced to shutter its successful 
IDA program, and if Congress does not act now, more closures are sure 
to follow.
  Giving these low-income families a chance to pull themselves out of 
poverty will benefit us all. Their businesses will employ our 
neighbors; their children will be our doctors and lawyers. I urge my 
colleagues to support this important legislation.

                          ____________________