I
105TH CONGRESS
2D SESSION
H. R. 4254
To amend the Community Services Block Grant Act to provide for the
establishment of demonstration projects designed to determine the social,
civic, psychological, and economic effects of providing to individuals and
families with limited means an incentive to accumulate assets and to
determine the extent to which an asset-based policy may be used to
enable individuals and families with limited means to increase their
economic self-sufficiency.
IN THE HOUSE OF REPRESENTATIVES
JULY 16, 1998
Mr. HALL of Ohio (for himself and Mr. KASICH) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and the Workforce, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To amend the Community Services Block Grant Act to pro-
vide for the establishment of demonstration projects de-
signed to determine the social, civic, psychological, and
economic effects of providing to individuals and families
with limited means an incentive to accumulate assets
and to determine the extent to which an asset-based
policy may be used to enable individuals and families
with limited means to increase their economic self-suffi-
ciency.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AMENDMENTS.
The Community Services Block Grant Act (42 U.S.C.
9901–9912)is amended—
(1) by striking ‘‘This subtitle’’ each place it ap-
pears (other than in section 671) and inserting
‘‘This subtitle’’,
(2) by striking ‘‘this subtitle’ each place it ap-
pears (other than in section 671) and inserting ‘‘this
subtitle’’,
(3) by inserting the following after section 671:
‘‘PART A—COMMUNITY SERVICES GRANTS’’, AND
(4) by adding at the end the following:
‘‘PART B— ASSETS FOR INDEPENDENCE
‘‘SEC. 685. SHORT TITLE.
‘‘This part may be cited as the ‘Assets for Independ-
ence Act’.
‘‘SEC. 686. FINDINGS.
‘‘Congress makes the following findings:
‘‘(1) Economic well-being does not come solely
from income, spending, and consumption, but also
requires savings, investment, and accumulation of
assets because assets can improve economic inde-
pendence and stability, connect individuals with a
viable and hopeful future, stimulate development of
human and other capital, and enhance the welfare of
offspring.
‘‘(2) Fully 1⁄2 of all Americans have either no,
negligible, or negative assets available for invest-
ment, just as the price of entry to the economic
mainstream, the cost of a house, an adequate edu-
cation, and starting a business, is increasing. Fur-
ther, the household savings rate of the United States
lags far behind other industrial nations presenting a
barrier to economic growth.
‘‘(3) In the current tight fiscal environment, the
United States should invest existing resources in
high-yield initiatives. There is reason to believe that
the financial returns, including increased income, tax
revenue, and decreased welfare cash assistance, re-
sulting from individual development accounts will far
exceed the cost of investment in those accounts.
‘‘(4) Traditional public assistance programs
concentrating on income and consumption have rare-
ly been successful in promoting and supporting the
transition to increased economic self-sufficiency. In-
come-based domestic policy should be complemented
with asset-based policy because, while income-based
policies ensure that consumption needs (including
food, child care, rent, clothing, and health care) are
met, asset-based policies provide the means to
achieve greater independence and economic well-
being.
‘‘SEC. 687. PURPOSES.
‘‘The purposes of this part are to provide for the es-
tablishment of demonstration projects designed to deter-
mine—
‘‘(1) the social, civic, psychological, and eco-
nomic effects of providing to individuals and families
with limited means an incentive to accumulate assets
by saving a portion of their earned income;
‘‘(2) the extent to which an asset-based policy
that promotes saving for postsecondary education,
homeownership, and microenterprise development
may be used to enable individuals and families with
limited means to increase their economic self-suffi-
ciency; and
‘‘(3) the extent to which an asset-based policy
stabilizes and improves families and the community
in which they live.
‘‘SEC. 688. DEFINITIONS.
‘‘In this part:
‘‘(1) APPLICABLE PERIOD.—The term ‘‘applica-
ble period’’ means, with respect to amounts to be
paid from a grant made for a project year, the cal-
endar year immediately preceding the calendar year
in which the grant is made.
‘‘(2) ELIGIBLE INDIVIDUAL.—The term ‘‘eligi-
ble individual’’ means an individual who is selected
to participate by a qualified entity under section
693.
‘‘(3) EMERGENCY
WITHDRAWAL.—The term
‘‘emergency withdrawal’’ means a withdrawal by an
eligible individual that—
‘‘(A) is a withdrawal of only those funds,
or a portion of those funds, deposited by the in-
dividual in the individual development account
of the individual;
‘‘(B) is permitted by a qualified entity on
a case-by-case basis; and
‘‘(C) is made for—
‘‘(i) expenses for medical care or nec-
essary to obtain medical care, for the indi-
vidual or a spouse or dependent of the in-
dividual described in paragraph (8)(D);
‘‘(ii) payments necessary to prevent
the eviction of the individual from the resi-
dence of the individual, or foreclosure on
the mortgage for the principal residence of