WASHINGTON, D.C. — U.S. Senators Bob Casey (D-PA) and Eric Schmitt (R-MO) introduced the Ensuring Nationwide Access to a Better Life Experience (ENABLE) Act on Thursday. The bipartisan bill aims to permanently extend crucial provisions of the Achieving a Better Life Experience (ABLE) program, allowing people with disabilities to save money without jeopardizing their eligibility for federal benefits like Medicaid and Supplemental Security Income (SSI).
The ABLE program, established in 2014 by Senator Casey, enables individuals with disabilities and their families to create tax-free savings accounts. These accounts allow them to save and invest funds without risking their access to essential federal aid. However, three key provisions of the program are set to expire in 2025. The ENABLE Act seeks to make these provisions permanent.
Senator Casey highlighted the challenges faced by people with disabilities, who often struggle to save for basic needs due to restrictive asset limitations in federal assistance programs. “For years, people with disabilities were barred from saving for the future, meaning they couldn’t save for a home, purchase needed assistive technology, or save for an accessible car,” Casey said. He emphasized the bipartisan effort involved in crafting this legislation, which he worked on with Senator Schmitt.
People with disabilities face higher rates of poverty compared to those without disabilities. Households with a person who has a work-limiting disability need, on average, 28 percent more income to achieve the same standard of living as those without disabilities. The ABLE program provides a vital workaround to these financial barriers. Since its inception, over 162,000 individuals have opened ABLE accounts, collectively saving more than $1.74 billion.
The three provisions set to expire are:
- ABLE to Work: This allows employed individuals with disabilities to contribute additional funds to their ABLE accounts. The extra contributions can be up to the federal poverty level for a single-person household or the beneficiary’s annual earnings, whichever is less.
- ABLE Saver’s Credit: This provision offers a nonrefundable tax credit of up to $1,000 for individuals with disabilities who contribute to their ABLE accounts.
- 529 to ABLE Rollover: This allows for the rollover of funds from a 529 education savings account to an ABLE account without incurring income taxes, provided the amount does not exceed the annual ABLE contribution limit.
Making these provisions permanent through the ENABLE Act would provide long-term financial security for people with disabilities. The bill has garnered broad bipartisan support, co-sponsored by Senators John Boozman (R-AR), Chris Van Hollen (D-MD), Peter Welch (D-VT), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Amy Klobuchar (D-MN), and Markwayne Mullin (R-OK).
Senator Schmitt expressed his commitment to ensuring that the ABLE program remains accessible and effective for those who depend on it. “This bill will help secure financial independence for individuals with disabilities,” he said.
The ENABLE Act represents a significant step toward addressing the financial inequities faced by people with disabilities. By making these provisions permanent, the legislation aims to remove barriers that prevent individuals from saving for essential needs and achieving greater financial stability.
As Congress considers the ENABLE Act, the focus remains on expanding financial opportunities for one of the most vulnerable populations. The proposed legislation underscores the ongoing effort to ensure that individuals with disabilities can lead more independent and financially secure lives.
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