I 

114TH CONGRESS 

2D SESSION H. R. 5214 

To amend the Social Security Act, the Food and Nutrition Act of 2008, 

and the Low-Income Home Energy Assistance Act of 1981 to require 

that the value of child’s savings accounts be disregarded for the purpose 

of determining eligibility to receive benefits under such Acts; and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2016 

Mr. CARTWRIGHT (for himself, Mr. RIBBLE, Ms. NORTON, Mr. GRIJALVA, Mr. 

SMITH of Washington, Ms. TSONGAS, Mr. HASTINGS, Mr. HINOJOSA, and 

Ms. TITUS) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Energy and Commerce, and Education and the Workforce, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Social Security Act, the Food and Nutrition 

Act of 2008, and the Low-Income Home Energy Assistance Act of 1981 to require that the value of child’s 

savings accounts be disregarded for the purpose of determining eligibility to receive benefits under such Acts; 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Children’s Savings Ac3 counts Offer Parents Plenty Of Reasons To Understand 

4 and Invest in Tuition Yearly Act’’ or the ‘‘CSA OPPOR5 TUNITY Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) CHILD’S SAVINGS ACCOUNT.—The term 

9 ‘‘child’s savings account’’ means a trust created or 

10 organized exclusively for the purpose of paying the 

11 qualified expenses of only an individual who, when 

12 the trust is created or organized, has not attained 

13 18 years of age, if the written governing instrument 

14 creating the trust contains the following require15 ments: 

16 (A) The trustee is a federally insured fi17 nancial institution, or a State insured financial 

18 institution if a federally insured financial insti19 tution is not available. 

20 (B) The assets of the trust will be invested 

21 in accordance with the direction of the indi22 vidual or of a parent or guardian of the indi23 vidual, after consultation with the entity pro24 viding the initial contribution to the trust or, if 

25 applicable, a matching or other contribution for 

26 the individual. 

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1 (C) The assets of the trust will not be 

2 commingled with other property except in a 

3 common trust fund or common investment 

4 fund. 

5 (D) Any amount in the trust that is attrib6 utable to an account seed or matched deposit 

7 may be paid or distributed from the trust only 

8 for the purpose of paying qualified expenses of 

9 the individual. 

10 (2) QUALIFIED EXPENSES.—The term ‘‘quali11 fied expenses’’ means, with respect to an individual, 

12 expenses that— 

13 (A) are incurred after the individual re14 ceives a secondary school diploma or its recog15 nized equivalent; and 

16 (B) are— 

17 (i) postsecondary educational expenses 

18 (as defined in section 529 of the Internal 

19 Revenue Code of 1986) of the individual; 

20 (ii) for the purchase of a first home 

21 by the individual; or 

22 (iii) for the capitalization of a busi23 ness owned by the individual. 

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1 TITLE I—AMENDMENTS TO THE 

2 SOCIAL SECURITY ACT 

3 SEC. 101. INTEREST IN, AND DISTRIBUTION FROM, A QUALI4 FIED TUITION PROGRAM REQUIRED TO BE 

5 DISREGARDED UNDER THE TANF PROGRAM. 

6 (a) IN GENERAL.—Section 408(a) of the Social Secu7 rity Act (42 U.S.C. 608(a)) is amended by adding at the 

8 end the following: 

9 ‘‘(13) REQUIREMENT TO DISREGARD INTEREST

10 IN AND DISTRIBUTION FROM, A QUALIFIED TUITION

11 PROGRAM.—A State to which a grant is made under 

12 section 403 shall disregard the value of any interest 

13 in, or distribution from, a qualified tuition program 

14 (as defined in section 529(b) of the Internal Rev15 enue Code of 1986), in determining the eligibility of, 

16 and the amount or type of assistance to be provided 

17 to an individual or family under the State program 

18 funded under this part.’’. 

19 (b) PENALTY FOR NONCOMPLIANCE.— 

20 (1) IN GENERAL.—Section 409(a) of such Act 

21 (42 U.S.C. 609(a)) is amended by adding at the end 

22 the following: 

23 ‘‘(17) PENALTY FOR FAILURE TO DISREGARD

24 INTEREST IN, OR DISTRIBUTION FROM, A QUALIFIED

25 TUITION PROGRAM.— 

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1 ‘‘(A) IN GENERAL.—If the Secretary finds 

2 that a State to which a grant is made under 

3 section 403 for a fiscal year has failed to com4 ply with section 408(a)(13) during the fiscal 

5 year, the Secretary shall reduce the grant oth6 erwise payable to the State under section 

7 403(a)(1) for the succeeding fiscal year by the 

8 percentage specified in subparagraph (B) of 

9 this paragraph. 

10 ‘‘(B) AMOUNT OF REDUCTION.—The re11 duction required under subparagraph (A) shall 

12 be— 

13 ‘‘(i) not less than 1 nor more than 2 

14 percent; 

15 ‘‘(ii) not less than 2 nor more than 3 

16 percent, if the finding is the 2nd consecu17 tive finding made pursuant to subpara18 graph (A); or 

19 ‘‘(iii) not less than 3 nor more than 5 

20 percent, if the finding is the 3rd or a sub21 sequent consecutive such finding.’’. 

22 (2) NO EXCEPTION FOR REASONABLE CAUSE.— 

23 Section 409(b)(2) of such Act (42 U.S.C. 609(b)(2)) 

24 is amended by striking ‘‘or (13)’’ and inserting 

25 ‘‘(13), or (17)’’. 

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1 SEC. 102. EXCLUSION OF INTEREST IN, AND DISTRIBUTION 

2 FROM, A QUALIFIED TUITION PROGRAM 

3 FROM RESOURCES UNDER THE SSI PRO4 GRAM. 

5 Section 1613(a) of the Social Security Act (42 U.S.C. 

6 1382b(a)) is amended— 

7 (1) by striking ‘‘and’’ at the end of paragraph 

8 (16); 

9 (2) by striking the period at the end of para10 graph (17) and inserting ‘‘; and’’; and 

11 (3) by inserting after paragraph (17) the fol12 lowing: 

13 ‘‘(18) the value of any interest in, or distribu14 tion from, a qualified tuition program (as defined in 

15 section 529(b) of the Internal Revenue Code of 

16 1986).’’. 

17 SEC. 103. CHILD’S SAVINGS ACCOUNT REQUIRED TO BE 

18 DISREGARDED UNDER THE TANF PROGRAM. 

19 (a) IN GENERAL.—Section 408(a)(13) of the Social 

20 Security Act (42 U.S.C. 608(a)), as amended by section 

21 101(a) of this Act, is amended— 

22 (1) by striking ‘‘(13)’’ and all that follows 

23 through ‘‘A State’’ and inserting the following: 

24 ‘‘(13) REQUIREMENT TO DISREGARD INTEREST

25 IN, AND DISTRIBUTION FROM, A QUALIFIED TUITION

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1 PROGRAM, AND VALUE OF A CHILD’S SAVINGS AC2 COUNT.— 

3 ‘‘(A) IN GENERAL.—A State’’; and 

4 (2) by inserting ‘‘and the value of any child’s 

5 savings account (as defined in section 2 of the CSA 

6 OPPORTUNITY Act)’’ after ‘‘1986)’’. 

7 (b) PENALTY FOR NONCOMPLIANCE.—Section 

8 409(a)(17) of such Act (42 U.S.C. 609(a)(17)), as added 

9 by section 101(b)(1) of this Act, is amended in the para10 graph heading, by inserting ‘‘OR VALUE OF A CHILD’S SAV11 INGS ACCOUNT’’ after ‘‘PROGRAM’’. 

12 SEC. 104. EXCLUSION OF CHILD’S SAVINGS ACCOUNT FROM 

13 RESOURCES UNDER THE SSI PROGRAM. 

14 (a) IN GENERAL.—Section 1613(a) of the Social Se15 curity Act (42 U.S.C. 1382b(a)), as amended by section 

16 102 of this Act, is amended— 

17 (1) by striking ‘‘and’’ at the end of paragraph 

18 (17); 

19 (2) by striking the period at the end of para20 graph (18) and inserting ‘‘; and’’; and 

21 (3) by inserting after paragraph (18) the fol22 lowing: 

23 ‘‘(19) any child’s savings account (as defined in 

24 section 2 of the CSA OPPORTUNITY Act), includ25 ing accrued interest or other earnings thereon.’’. 

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1 (b) CONFORMING AMENDMENT.—Section 1613(e)(5) 

2 of such Act (42 U.S.C. 1382b(e)(5)) is amended by insert3 ing ‘‘of this Act or section 2 of the CSA OPPORTUNITY 

4 Act’’ before the period. 

5 TITLE II—AMENDMENT TO THE 

6 FOOD AND NUTRITION ACT 

7 OF 2008 

8 SEC. 201. EXCLUSION OF CHILD’S SAVINGS ACCOUNTS 

9 FROM RESOURCES UNDER THE SUPPLE10 MENTAL NUTRITION ASSISTANCE PROGRAM. 

11 Section 5(g) of the Food and Nutrition Act of 2008 

12 (7 U.S.C. 2014(g)) is amended by adding at the end the 

13 following: 

14 ‘‘(9) EXCLUSION OF CHILD’S SAVINGS AC15 COUNTS FROM ALLOWABLE FINANCIAL RE16 SOURCES.— 

17 ‘‘(A) EXCLUSION.—The Secretary shall ex18 clude from financial resources under this sub19 section the value of funds in any child’s savings 

20 account. 

21 ‘‘(B) CHILD’S SAVINGS ACCOUNT.—For 

22 purposes of subparagraph (A), the term ‘child’s 

23 savings account’ has the meaning given such 

24 term in section 2 of the CSA OPPORTUNITY 

25 Act.’’. 

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1 TITLE III—AMENDMENT TO LOW2 INCOME HOME ENERGY AS3 SISTANCE ACT OF 1981 

4 SEC. 201. EXCLUSION OF CHILD’S SAVINGS ACCOUNTS 

5 FROM RESOURCES UNDER THE LOW-INCOME 

6 HOME ENERGY ASSISTANCE PROGRAM. 

7 Section 2605(f) of the Low-Income Home Energy As8 sistance Act of 1981 (42 U.S.C. 8624(f)) is amended by 

9 adding at the end the following: 

10 ‘‘(3) EXCLUSION OF CHILD’S SAVINGS ACCOUNTS

11 FROM ALLOWABLE FINANCIAL RESOURCES.— 

12 ‘‘(A) EXCLUSION.—The income of a household 

13 shall be determined under this section without re14 gard to the value of funds in any child’s savings ac15 count. 

16 ‘‘(B) CHILD’S SAVINGS ACCOUNT.—For pur17 poses of subparagraph (A), the term ‘child’s savings 

18 account’ has the meaning given such term in section 

19 2 of the CSA OPPORTUNITY Act.’’. 

Æ 

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