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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5468 Introduced in House (IH)]

<DOC>

118th CONGRESS
  1st Session
                                H. R. 5468

 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 children's savings accounts be disregarded for the purpose 
of determining eligibility to receive certain benefits under such Acts, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2023

Mr. Cartwright (for himself, Ms. Strickland, Mr. Grijalva, Ms. Norton, 
 and Mr. Thompson of Mississippi) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to the 
Committees on Agriculture, Education and the Workforce, and Energy and 
Commerce, 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 children's savings accounts be disregarded for the purpose 
of determining eligibility to receive certain benefits under such Acts, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children's Savings Accounts Offer 
Parents Plenty Of Reasons To Understand and Invest in Tuition Yearly 
Act'' or the ``CSA OPPORTUNITY Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Children's savings account program.--The term 
        ``children's savings account program'' refers to a program 
        created or organized by a State, local, or Federal Government, 
        a 501(c)(3) nonprofit organization, a school district, or a 
        college or university for the purpose of creating children's 
        savings accounts.
            (2) Children's savings account.--The term ``children's 
        savings account'' means a savings or investment account or 
        trust created as part of a children's savings account program 
        exclusively for the purpose of paying the qualified expenses of 
        only individuals, who, when the account is created, have not 
        attained 18 years of age, provided that it has the following 
        requirements:
                    (A) If a savings or investment account is created--
                            (i) the account is held in a federally 
                        insured financial institution, or a State-
                        insured financial institution if a federally 
                        insured financial institution is not available, 
                        or in an investment account by a custodian or 
                        third-party owner on behalf of the individuals, 
                        if the custodian or third-party owner is a 
                        State, local, or Federal Government, a 
                        501(c)(3) nonprofit organization, a school 
                        district, or a college or university,
                            (ii) the assets of the account will not be 
                        commingled with other property except in a 
                        common children's savings account, trust fund, 
                        or other common investment fund, and
                            (iii) any amount in the account that is 
                        attributable to a seed deposit, matched 
                        deposit, or other incentive provided by the 
                        children's savings account program may be paid 
                        or distributed from the account only for the 
                        purpose of paying qualified expenses of the 
                        individual.
                    (B) If a trust is created or organized, the written 
                governing instrument creating the trust contains the 
                following requirements:
                            (i) The trust is created on behalf of the 
                        individuals, and the trustee is a State, local, 
                        or Federal Government, a 501(c)(3) nonprofit 
                        organization, a school district, or a college 
                        or university.
                            (ii) The assets of the trust will be 
                        invested in accordance with the direction of 
                        the trustee.
                            (iii) The assets of the trust will not be 
                        commingled with other property except in a 
                        common trust fund or common investment fund.
                            (iv) Any amount in the trust that is 
                        attributable to a seed deposit, matched 
                        deposit, or other children's savings account 
                        program incentive may be paid or distributed 
                        from the trust only for the purpose of paying 
                        qualified expenses of the individual.
            (3) Qualified expenses.--The term ``qualified expenses'' 
        means, with respect to an individual, expenses that are--
                    (A) incurred after the individual receives a 
                secondary school diploma or its recognized equivalent, 
                and
                    (B) for--
                            (i) postsecondary educational expenses (as 
                        defined in section 529 of the Internal Revenue 
                        Code of 1986) of the individual,
                            (ii) the purchase of a first home by the 
                        individual, or
                            (iii) the capitalization of a business 
                        owned by the individual.

             TITLE I--AMENDMENTS TO THE SOCIAL SECURITY ACT

SEC. 101. INTEREST IN, AND DISTRIBUTION FROM CHILDREN'S SAVINGS 
              ACCOUNTS REQUIRED TO BE DISREGARDED UNDER THE TANF 
              PROGRAM.

    (a) In General.--Section 408(a) of the Social Security Act (42 
U.S.C. 608(a)) is amended by adding at the end the following:
            ``(13) Requirement to disregard value of children's savings 
        accounts.--A State to which a grant is made under section 403 
        shall disregard the value of funds in any children's savings 
        account (as defined in section 2 of the CSA OPPORTUNITY Act), 
        including accrued interest or other earnings thereon, in 
        determining the eligibility of, and the amount or type of 
        assistance to be provided to an individual or family under the 
        State program funded under this part.''.
    (b) Penalty for Noncompliance.--
            (1) In general.--Section 409(a) of such Act (42 U.S.C. 
        609(a)) is amended by adding at the end the following:
            ``(17) Penalty for failure to disregard value of children's 
        savings accounts.--
                    ``(A) In general.--If the Secretary finds that a 
                State to which a grant is made under section 403 for a 
                fiscal year has failed to comply with section 
                408(a)(13) during the fiscal year, the Secretary shall 
                reduce the grant otherwise payable to the State under 
                section 403(a)(1) for the succeeding fiscal year by the 
                percentage specified in subparagraph (B) of this 
                paragraph.
                    ``(B) Amount of reduction.--The reduction required 
                under subparagraph (A) shall be--
                            ``(i) not less than 1 nor more than 2 
                        percent;
                            ``(ii) not less than 2 nor more than 3 
                        percent, if the finding is the second 
                        consecutive finding made pursuant to 
                        subparagraph (A); or
                            ``(iii) not less than 3 nor more than 5 
                        percent, if the finding is the third or a 
                        subsequent consecutive such finding.''.
            (2) No exception for reasonable cause.--Section 409(b)(2) 
        of such Act (42 U.S.C. 609(b)(2)) is amended by striking ``or 
        (13)'' and inserting ``(13), or (17)''.

SEC. 102. EXCLUSION OF CHILDREN'S SAVINGS ACCOUNTS FROM RESOURCES UNDER 
              THE SSI PROGRAM.

    (a) In General.--Section 1613(a) of the Social Security Act (42 
U.S.C. 1382b(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (16);
            (2) by striking the period at the end of paragraph (17) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (17) the following:
            ``(18) the value of funds in any children's savings account 
        (as defined in section 2 of the CSA OPPORTUNITY Act), including 
        accrued interest or other earnings thereon.''.
    (b) Conforming Amendment.--Section 1613(e)(5) of such Act (42 
U.S.C. 1382b(e)(5)) is amended by inserting ``of this Act or section 2 
of the CSA OPPORTUNITY Act'' before the period.

       TITLE II--AMENDMENT TO THE FOOD AND NUTRITION ACT OF 2008

SEC. 201. EXCLUSION OF CHILDREN'S SAVINGS ACCOUNTS FROM RESOURCES UNDER 
              THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

    Section 5(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(g)) is amended by adding at the end the following:
            ``(9) Exclusion of children's savings accounts from 
        allowable financial resources.--
                    ``(A) Exclusion.--The Secretary shall exclude from 
                financial resources under this subsection the value of 
                funds in any children's savings account, including 
                accrued interest or other earnings thereon.
                    ``(B) Children's savings account.--For purposes of 
                subparagraph (A), the term `children's savings account' 
                has the meaning given such term in section 2 of the CSA 
                OPPORTUNITY Act.''.

 TITLE III--AMENDMENT TO LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 1981

SEC. 301. EXCLUSION OF CERTAIN ACCOUNTS FROM CALCULATION UNDER THE LOW-
              INCOME HOME ENERGY ASSISTANCE PROGRAM.

    Section 2605(f) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8624(f)) is amended by adding at the end the following:
    ``(3) Exclusion of Certain Accounts From Calculation.--
            ``(A) Exclusion.--The determination of the income or assets 
        of a household for purposes of eligibility under this section 
        shall be made without regard to the value of funds in any 
        children's savings account, including accrued interest or other 
        earnings thereon.
            ``(B) Children's savings account.--For purposes of 
        subparagraph (A), the term `children's savings account' has the 
        meaning given such term in section 2 of the CSA OPPORTUNITY 
        Act.''.
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