You’ve Never Heard of This Legislation. But If Passed, It Would Increase the Welfare State.

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Heritage Foundation:

Before Congress recessed for the midterm elections, lawmakers announced plans to use the current lame-duck session to work on passing a bill called “The Achieving a Better Life Experience (ABLE) Act.” Supporters describe the bill as a way to eliminate “barriers to work and saving by preventing dollars saved through ABLE accounts from counting against an individual’s eligibility for any federal benefits program.” But what, exactly does that mean?

 

The ABLE Act (H.R. 647) would effectively eliminate the asset test for many families that receive means-tested welfare assistance. Consequently, it would expand the welfare state.

 

The purpose of asset tests is to ensure that individuals use their own resources before turning to taxpayers for support. The Congressional Budget Office estimates the bill will cost taxpayers $2.1 billion in just 10 years. Increased eligibility for means-tested welfare assistance accounts for more than half of that cost.