Van Hollen Joins Schmitt, Casey, & Boozman in Introducing Bipartisan Bill to Protect ABLE Accounts

This week, Senator Chris Van Hollen (D-Md.) joined Senators Eric Schmitt (R-Mo.), Bob Casey (D-Pa.), and John Boozman (R-Ark.) in introducing the bipartisan Ensuring Nationwide Access to Better Life Experience (ENABLE) Act to allow people with disabilities and their families to save and invest through tax-free savings accounts while protecting eligibility to federal programs like Medicaid and Supplemental Security Income (SSI). The Senators’ legislation prevents critical ABLE provisions from expiring, protecting key benefits for individuals with disabilities across the country.

“The ABLE Act has empowered people with disabilities to take charge of their economic futures – that’s why I helped introduce this legislation and fought to pass it nearly a decade ago. Now, making these provisions permanent will ensure tens of thousands of Americans can continue to meaningfully contribute to their ABLE accounts, strengthening their financial security, independence, and overall quality of life for years to come,” said Senator Chris Van Hollen, who while in the House of Representatives was the lead Democratic sponsor of the original ABLE Act and led the effort to pass it in 2014.

“My son, Stephen, was my inspiration to run for office in the first place, and since that first day, I have been a staunch advocate for standing up and making life better for those with disabilities. The ENABLE Act is a fantastic bipartisan opportunity to protect access to federal programs for those with disabilities while safeguarding their ability to invest and save. I’m grateful for the support of Senators Casey, Boozman, Welch, Kaine, Van Hollen, Tuberville, Britt, Mullin, Cotton, Wyden, and Klobuchar, and look forward to pushing this bill across the finish line,” said Senator Eric Schmitt.

“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. I worked to create the ABLE program to knock down those barriers, and ever since I’ve been working across the aisle to make sure the program is as effective as it can be,” said Senator Bob Casey. “I’m grateful to have worked with Senator Schmitt on this new bipartisan bill, which will prevent some key ABLE provisions from expiring and ensure that as many people with disabilities as possible across the country can continue to benefit from opening ABLE accounts.”

“This is a commonsense measure that helps individuals with disabilities and their caregivers invest and save for the future. I’m pleased to support this bipartisan legislation that will deliver tools allowing these families to better control their financial security,” said Senator John Boozman.

They were also joined by Senators Tom Cotton (R-Ark.), Peter Welch (D-Vt.), Tommy Tuberville (R-Ala.), Tim Kaine (D-Va.), Katie Britt (R-Ala.), Amy Klobuchar (D-Minn.), Markwayne Mullin (R-Okla.), and Ron Wyden (R-Ore.) supporting the bill.

The ENABLE Act is supported by Autism Speaks, the National Down Syndrome Society, the ABLE Savings Plan Network (ASPN), the National Association of State Treasures (NAST), BPC Action, the Jewish Federations of North America, and the American Network of Community Options and Resources (ANCOR).

“We are grateful for this bipartisan effort to improve the financial security of people with autism and other disabilities. ABLE accounts are a vital tool, allowing autistic people and their families to save for expenses such as accommodations for working-age autistic adults, accessible housing and transportation, assistive technology, and raising a child on the spectrum,” said Keith Wargo, president and CEO of Autism Speaks. “By permanently extending key elements of ABLE policy, the ENABLE Act will not only enhance financial opportunities for the autism community, but also empower autistic individuals to achieve greater financial independence and security."

BACKGROUND:

• There are over 162,000 Achieving a Better Life Experience (ABLE) accounts (or 529A accounts under the Internal Revenue Code). Created in 2014, these accounts allow people with disabilities and their families to save and invest through tax-free savings accounts without losing eligibility for federal programs like Medicaid and Supplemental Security Income (SSI). Individuals with ABLE accounts have saved $1.74 billion annually. There are three ABLE provisions set to expire in 2025:
• ABLE to Work: An individual with a disability who is employed can contribute an additional amount to his or her ABLE account. This additional contribution cannot be greater than either:
• the prior year’s federal poverty level for a one-person household ($15,060 in 2024), or
• the beneficiary’s yearly compensation.
• ABLE Saver’s Credit: An individual with a disability who make qualified contributions to their ABLE account can qualify for a nonrefundable saver’s credit of up to $1,000.
• 529 to ABLE rollover: An individual with a disability may rollover from a 529 education savings account to an ABLE account that are less than or equal to the annual ABLE contribution limit are not subject to income taxation.
• The expiration of these provisions would create barriers for individuals with disabilities to save for their future needs, while also likely ensuring further utilization of federal safety net programs. As Congress is one fight away from not reauthorizing these noncontroversial provisions, ENABLE enshrines these provisions into law permanently—providing certainty.
• Senator Schmitt led the implementation of Missouri’s ABLE program when he served as State Treasurer. His son Stephen Schmitt, who has tuberous sclerosis, is on the autism spectrum, and has epilepsy, was account number one in Missouri’s ABLE program.

The full text of the bill is available here.