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[GCL DRAFT 4/5/00]
The Honorable J. Dennis Hastert
Speaker of the House of Representatives
Washington, D.C. 20515
Dear Mr. Speaker:
Enclosed for the consideration of the Congress is the Administration's draft bill, the "Assets for
Independence Act Amendments of 2000". The bill makes amendments to the Assets for
Independence Act (AFIA) recently enacted as title IV of the Community Opportunities,
Accountability, and Training and Educational Services Act of 1998. The AFIA authorizes the
Secretary to fund Individual Development Account (IDA) demonstration projects through which
individuals of limited means are encouraged to accumulate assets by maintaining accounts out of
which only qualified expenses can be paid.
In the two years since enactment of the AFIA, it has become clear that certain relatively minor
statutory changes are required in order to enhance the value and efficiency of the program. We
have found that the statute as originally enacted narrowly limits the number of financial
institutions eligible to administer IDAs and excludes an important expenditure from the
definition of qualified expenses for which IDA funds may be spent. We are proposing that low
income credit unions be added as qualified entities and that the purchase of an automobile be
added as a qualified expense.
In addition to permitting the purchase grantees of a car, the bill eliminates the provision limiting
permissible house purchase costs to the average in the area. The draft bill also increases the
set-aside available to participating financial institutions for economic literacy training,
administrative costs, and program evaluation. In addition, the bill creates alternative eligibility
criteria so that individuals earning up to 200% of the poverty line or 60% of the area median
income would be eligible for the program. Finally, the bill amends the Act to ensure that IDA
funds are not considered in determining a participant's eligibility for needs-based assistance.
other
These proposals would improve the ability of the IDA program to accomplish its purpose of
encouraging savings and increasing economic self-sufficiency among program participants. The
bill's provision are detailed in the enclosed section-by-section summary
lowisome
We urge the Congress to give the draft bill its prompt and favorable consideration. The Office of
Management and Budget has advised that there is no objection to the submission of this draft bill
to the Congress and that its enactment would be in accord with the program of the President.
Sincerely,
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"ocrText": "[GCL DRAFT 4/5/00]\nThe Honorable J. Dennis Hastert\nSpeaker of the House of Representatives\nWashington, D.C. 20515\nDear Mr. Speaker:\nEnclosed for the consideration of the Congress is the Administration's draft bill, the \"Assets for\nIndependence Act Amendments of 2000\". The bill makes amendments to the Assets for\nIndependence Act (AFIA) recently enacted as title IV of the Community Opportunities,\nAccountability, and Training and Educational Services Act of 1998. The AFIA authorizes the\nSecretary to fund Individual Development Account (IDA) demonstration projects through which\nindividuals of limited means are encouraged to accumulate assets by maintaining accounts out of\nwhich only qualified expenses can be paid.\nIn the two years since enactment of the AFIA, it has become clear that certain relatively minor\nstatutory changes are required in order to enhance the value and efficiency of the program. We\nhave found that the statute as originally enacted narrowly limits the number of financial\ninstitutions eligible to administer IDAs and excludes an important expenditure from the\ndefinition of qualified expenses for which IDA funds may be spent. We are proposing that low\nincome credit unions be added as qualified entities and that the purchase of an automobile be\nadded as a qualified expense.\nIn addition to permitting the purchase grantees of a car, the bill eliminates the provision limiting\npermissible house purchase costs to the average in the area. The draft bill also increases the\nset-aside available to participating financial institutions for economic literacy training,\nadministrative costs, and program evaluation. In addition, the bill creates alternative eligibility\ncriteria so that individuals earning up to 200% of the poverty line or 60% of the area median\nincome would be eligible for the program. Finally, the bill amends the Act to ensure that IDA\nfunds are not considered in determining a participant's eligibility for needs-based assistance.\nother\nThese proposals would improve the ability of the IDA program to accomplish its purpose of\nencouraging savings and increasing economic self-sufficiency among program participants. The\nbill's provision are detailed in the enclosed section-by-section summary\nlowisome\nWe urge the Congress to give the draft bill its prompt and favorable consideration. The Office of\nManagement and Budget has advised that there is no objection to the submission of this draft bill\nto the Congress and that its enactment would be in accord with the program of the President.\nSincerely,"
}