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OCR Page 1 of 37Margy Waller
10/10/2000 05:15:06 PM
Record Type:
Record
To:
[email protected] @ inet
CC:
Clifton G. Kellogg/OPD/EOP, Andrea Kane/OPD/EOP
bcc:
Subject: IDAs for cars
James - It turns out there are actually a couple language options for IDAs for cars.
The administration also supports amending the TANF statute (see attached language) to make it easier
for states like Tennessee and Oklahoma (and a few others already using TANF for IDAs for cars) to use
TANF for IDAs for cars. As I mentioned, the change does not reference cars specifically, but changes the
disregard section of the statute so that all TANF IDA savers are treated equally - and states do not have
to differentiate depending on the goal of the saver. HHS has approved this language.
42 USC 604.dc TANF amendment)
Also - because the administration has made allowing cars as a qualified purpose for IDAs a high priority,
it IS in the AFIA language. The attached draft language is the most current version we have. However, it
is our understanding that Senator Gregg's office has indicated a preference for the original language
allowing the additional eligibility criterion of 200% of the federal poverty level. Therefore, I have struck
the old Section 7 of the bill and replaced it with the version I believe CFED wants, and Senator Gregg has
agreed to accept. Also, as I mentioned in our phone call, Senator Gregg's office wants to add language
that will require disregard of the entire IDA for purposes of determining eligibility for federal means-tested
programs. We would not oppose that addition. I do not have language for that change.
changed IDA bill Sept 25A. (AFIA amendments)
In sum, the Administration would like to see all of these amendments adopted this year - in whatever
vehicle possible, though we understand special sensitivities around the New Markets bill. The AFIA
amendments are important for the success and growth of the demo. If the TANF IDA disregard change is
made, we can withdraw the AFIA cars amendment.
Please call if you have questions.
Margy
Clifton G. Kellogg
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