Long-Term and Sustained Support. Asset development should be viewed in a long-term context. It generally takes considerable time for a low-income person to save and invest in their future. IDAs should last for a number of years to help individuals work towards their goals. Supporting IDAs Launching an IDA program will require the capability to raise external resources, both public and private sector, to provide as matching funds in each IDA account.
Government is an important source of funding for IDAs.
IDAs, which emphasize economic self sufficiency, fit well with the stated goals of the recent federal welfare reform legislation. Under this legislation, states can allocate some of the federal funds for welfare reform to capitalize IDAs. Previously, welfare recipients without a state-approved waiver were penalized if they accumulated assets. This major change in public policy will allow former recipients to build savings as part of their economic self-sufficiency strategy. Some states use state-appropriated funds to support IDA programs, while others leverage private sector contributions to IDAs.