I 
110TH CONGRESS 
1ST SESSION H. R. 3172 
To exclude certain assets in determining eligibility under the food stamp 
program, the temporary assistance for needy families (TANF) program, 
the Supplemental Security Income (SSI) program, and the State chil-
dren’s health insurance program (SCHIP). 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2007 
Mr. CONYERS (for himself, Mr. ELLISON, Mr. THOMPSON of Mississippi, Mrs. 
CHRISTENSEN, Ms. NORTON, Ms. WOOLSEY, Mr. SERRANO, Mr. 
GRIJALVA, Mr. WEXLER, Ms. LEE, and Mr. RUSH) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Agriculture and Energy and Com-
merce, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To exclude certain assets in determining eligibility under 
the food stamp program, the temporary assistance for 
needy families (TANF) program, the Supplemental Secu-
rity Income (SSI) program, and the State children’s 
health insurance program (SCHIP). 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; FINDINGS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Freedom To Save Act of 2007’’. 
(b) FINDINGS.—Congress finds the following: 
(1) Under current law applicable to the food 
stamp program, a household may not have assets 
that exceed $2,000 (or $3,000 in the case of a 
household that includes an elderly or disabled mem-
ber). The program is federally funded, but States 
can modify or eliminate assets through categorical 
eligibility (automatic benefits through qualifications 
for other assistance programs). Benefit levels can be 
reduced by unearned income, which arise from inter-
est on past savings accounts, retirement accounts, or 
educational accounts. States count the amount that 
exceeds the fair market value of $4,650 of a house-
hold vehicle, unless they follow TANF rules. States 
have the discretion to exclude some assets that are 
excluded in TANF or Medicaid. 
(2) For low-income families who may need to 
rely on government assistance in the face of an 
emergency, saving is actively discouraged by asset 
limit policies, especially in formal financial institu-
tions. Recent qualitative research indicates that 
asset limits serve to discourage low-income families 
from saving, especially in formal financial institu-
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tions. These men and women realize that saving is 
penalized in the current welfare system and if they 
choose to save, their benefits will be reduced or 
eliminated. 
(3) Without a safety net of personal savings, it 
is more difficult for low-income families to graduate 
from government assistance and achieve true self- 
sufficiency—the goal of the 1996 welfare reform. 
Forcing individuals to ‘‘spend down’’ personal sav-
ings in order to qualify for assistance leaves families 
vulnerable to temporary income shocks due to emer-
gency or temporary unemployment. Precautionary 
savings will reduce overall dependence on public as-
sistance. 
(4)(A) SSI is federally administered with asset 
limits of $2,000 for individuals and $3,000 for cou-
ples. Assets may be reduced by unearned income 
from interest on past savings accounts or other as-
sets. One household vehicle is excluded from the 
asset tests, but the value of any other vehicles is 
counted as assets. 
(B) Individuals with disabilities who receive SSI 
benefits and are able to work for short periods of 
time are penalized for saving any money they earn 
with a complete loss of benefits. 
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(5) TANF is a cash assistance block grant pro-
gram whose policies are set by individual States. 
The 1996 welfare reform law gave states the discre-
tion to set asset limits for TANF, or waive the limit 
entirely. Today, States’ asset limits vary from 
$1,000 to no limit, with most set from $1,000 to 
$3,000. A number of States have reformed their 
asset limits: 
(A) Virginia and Ohio have already elimi-
nated the asset limit for TANF. To date, Vir-
ginia reports administrative savings due to 
streamlining the eligibility process and has ex-
perienced no increase in fraud. 
(B) 16 States have liberalized the financial 
asset limit for TANF to allow assets of more 
than $2,000. 29 States have liberalized their ve-
hicle allowances by either eliminating the value 
of at least one vehicle, or by raising the allow-
able value of a household vehicle. 
(6)(A) Within broad Federal guidelines for the 
SCHIP program, each State determines the design 
of its program, eligibility groups, benefit packages, 
payment levels for coverage, and administrative and 
operating procedures. States have substantial flexi-
bility in setting asset criteria in public health insur-
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ance plans for children under Medicaid and the 
State 
Children’s 
Health 
Insurance 
Program 
(SCHIP). 
(B) 49 States waive asset tests altogether; 2 
states (Oregon and Texas) have asset limits in their 
separate SCHIP programs. 
(C) Parents applying for public health insur-
ance face more restrictive eligibility criteria than 
children. 19 States have waived the asset test for 
parents; 6 states continue to limit assets to $1,000 
per household; and 26 States have asset limits that 
range from $2,000 to $30,000. 
(7) The personal savings rate was negative in 
2005 and 2006 according to the Department of 
Commerce, meaning that spending outstripped dis-
posable income for the first time since the Great De-
pression. 
(8) Asset limits are inefficient and, in some 
programs, entirely unnecessary. According to the 
Federal Reserve, most poor and near-poor families 
hold little to no wealth: in 2004, 17 percent of all 
households had zero or negative net worth, while 
29.6 percent had a net worth of less than $10,000. 
Few families who meet the low income eligibility 
thresholds that govern eligibility for major income 
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