CSA OPPORTUNITY Act
Bill: H.R.3378 | Sponsor: Rep. Cartwright, Matt (D-PA)
Policy area: Social Welfare

Summary:
Children's Savings Accounts Offer Parents Plenty Of Reasons To Understand and Invest in Tuition Yearly Act or the CSA OPPORTUNITY Act
This bill excludes the value of certain children's savings accounts, provided they meet specified requirements, when determining eligibility for particular means-tested federal programs.
To be excluded, the savings account must be created as part of a program organized by a government, nonprofit, school district, or college or university and meet other administrative criteria. Furthermore, proceeds of the account may only be used for postsecondary educational expenses, the purchase of a first home, or costs associated with starting a business once the individual receives a secondary school diploma or equivalent.

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 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, 
        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, 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, 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. CHILDREN'S SAVINGS ACCOUNT REQUIRED TO BE DISREGARDED UNDER 
              THE TANF PROGRAM.

    (a) In General.--Section 408(a)(13) of the Social Security Act (42 
U.S.C. 608(a)), as added by section 101(a) of this Act, is amended--
            (1) in the heading, by inserting ``, and value of a 
        children's savings account'' after ``program''; and
            (2) by inserting after ``1986)'' the following: ``and the 
        value of any children's savings account (as defined in section 
        2 of the CSA OPPORTUNITY Act)''.
    (b) Penalty for Noncompliance.--Section 409(a)(17) of such Act (42 
U.S.C. 609(a)(17)), as added by section 101(b)(1) of this Act, is 
amended in the paragraph heading, by inserting ``or value of a 
children's savings account'' after ``program''.

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

    (a) In General.--Section 1613(a) of the Social Security Act (42 
U.S.C. 1382b(a)), as amended by section 102 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (17);
            (2) by striking the period at the end of paragraph (18) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (18) the following:
            ``(19) 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.
                    ``(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.
            ``(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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