Overview
Title
To direct Federal agencies to provide information on ABLE accounts and to provide grants for increasing awareness of ABLE accounts.
ELI5 AI
The bill wants to help people with disabilities learn about special savings accounts called ABLE accounts, which can be used for things they need, like medical care or education. It also sets aside money to help teach more people about these accounts so they can use them too.
Summary AI
The bill S. 4910, known as the "ABLE Awareness Act," aims to improve awareness and understanding of ABLE accounts, which help individuals with disabilities save money for disability-related expenses. It directs federal agencies like the Social Security Administration, Department of Veterans Affairs, and others to provide information about ABLE accounts to eligible individuals. Additionally, the bill authorizes the awarding of grants to states and other entities to promote the benefits of ABLE accounts and support eligible individuals in opening them. Congress intends these measures to expand the benefits of ABLE accounts to a larger number of people, especially as eligibility requirements are set to broaden in the near future.
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AnalysisAI
The proposed legislation, known as the "ABLE Awareness Act," seeks to enhance the dissemination of information regarding ABLE accounts, which are tax-advantaged savings accounts for individuals with disabilities. The bill aims to direct federal agencies to inform individuals about these programs and allocate funds for awareness grants until 2029. This moves forward the ambition to broaden the accessibility and utilization of ABLE accounts by increasing public awareness and targeting potentially eligible individuals, including veterans.
General Summary of the Bill
At its core, the ABLE Awareness Act intends to expand awareness and usage of ABLE accounts through two primary actions: first, it requires federal agencies to distribute information about ABLE accounts to individuals with disabilities upon their enrollment in specific assistance programs. Second, it provides a funding mechanism through grants aimed at increasing public awareness. The bill identifies various agencies, from the Social Security Administration to the Department of Housing and Urban Development, with a role in pushing this information. Additionally, it allocates $50 million annually for the years 2025 to 2029 to support these awareness efforts.
Significant Issues
One of the main issues with the bill is the lack of specificity regarding which federal agencies are responsible for distributing information on ABLE accounts and how this is to be coordinated. Without clear directives, there is a risk of redundancy or inconsistent communication efforts. Additionally, while the bill acknowledges the 1.2 percent participation rate among eligible individuals, it does not outline concrete steps to improve this rate beyond spreading awareness.
The bill's language is complex, referencing various legal codes and sections that may not be easily comprehensible to those without a legal background. This complexity could hinder public understanding of the initiative and possibly the act's effectiveness.
Moreover, while it sets $50 million annually for outreach efforts, it fails to take into account potential changes in demand or cost over the five-year period, nor does it describe how grant applications will be evaluated and awarded. This could lead to inefficient use of funds or disparities in grant distribution.
Impact on the Public
Broadly, the bill aims to make ABLE accounts - and therefore financial planning - more accessible to individuals with disabilities and their families. It seeks to address the low engagement rate by increasing awareness, which could result in more individuals taking advantage of the financial benefits ABLE accounts offer. The potential positive impact includes a greater financial independence and security for individuals with disabilities.
Impact on Specific Stakeholders
For individuals with disabilities, particularly the estimated 14 million who will be eligible by 2026, the broader dissemination of information could significantly increase their participation in these beneficial programs. The outreach could especially benefit veterans, who make up a significant portion of this group. By involving state and tribal governments in promoting these accounts, the bill aims to respect local governance, potentially fostering community-level supportive initiatives.
On the negative side, agencies tasked with executing these dissemination requirements may face increased administrative burdens, potentially diverting resources from other priorities. Furthermore, without clear funding strategies, these efforts risk underfunding or poor resource allocation.
In conclusion, the ABLE Awareness Act represents a concerted effort to empower individuals with disabilities through better awareness and understanding of financial tools available to them. Nevertheless, for the act to achieve its objectives, improved clarity in execution and accountability measures are needed to ensure successful implementation and evaluation of its impact.
Financial Assessment
The "ABLE Awareness Act" addresses the dissemination of information about ABLE accounts, which are financial programs that support individuals with disabilities in saving for disability-related expenses. A central aspect of the bill involves funding for these initiatives.
Financial References and Appropriations
The legislation authorizes an appropriation of $50,000,000 annually for each fiscal year from 2025 through 2029 to support the awareness and promotion of ABLE accounts. This funding is allocated for grants to support eligible entities, such as states and tribal governments, in increasing awareness and encouraging the establishment of ABLE accounts among eligible individuals.
Relation to Identified Issues
Authorization of Appropriations
The appropriation of a fixed $50,000,000 per year raises potential concerns regarding adaptability to changing financial demands or underlying costs over time. This stability in funding might fail to account for variations in need or the effectiveness of dissemination efforts throughout the five-year period, which is an issue identified in the commentary. If demand for ABLE accounts or costs related to their promotion were to fluctuate, the fixed sum might not be adequate or efficient, potentially leading to financial inefficiencies or missed opportunities to maximize the awareness campaign's reach.
Lack of Specification and Coordination
Furthermore, while the bill has set appropriations for promotional activities, there is an absence of detailed guidance on the specific use of funds or how multiple agencies' efforts should be coordinated to avoid redundancy—a point raised in the issues. This lack of clarity can result in overlapping efforts among various agencies, potentially leading to ineffective use of the appropriated funds. Without clear accountability structures or a coherent strategy governing the distribution and utilization of financial resources, there might be disjointed communication strategies that hinder effective outreach.
Grant Allocation Criteria
Another critical aspect is the lack of explicit guidelines or criteria for awarding these grants, which might lead to inconsistent or biased distribution. The absence of transparent processes for grant evaluation could hinder fair and objective allocation, impacting the overall effectiveness of the representation and awareness efforts financed by these grants.
In summary, while the "ABLE Awareness Act" sets substantial funds for promoting ABLE accounts, effectively addressing issues related to resource allocation, agency coordination, and transparency remains crucial to optimize financial efficiency and outreach success.
Issues
The bill does not specify which Federal agencies are responsible for informing people with disabilities about ABLE programs, potentially leading to ambiguity about accountability (Section 3).
The lack of specific budget allocations for the direction of Federal agencies to promote ABLE accounts raises concerns about the financial sustainability and resources required to execute these initiatives (Section 4).
The text uses large figures regarding the number of eligible individuals and account balances without breaking down demographic data or showing how these estimates were calculated, possibly leading to misunderstandings about the scope of eligibility and participation (Section 2).
There is an absence of specific actions or plans to increase the percentage of individuals using ABLE accounts beyond acknowledging their availability, which might limit the effectiveness of the proposed dissemination efforts (Section 2).
The bill uses complex language and references multiple legal codes (e.g., sections of the Social Security Act, Internal Revenue Code), which may be difficult for non-experts to understand without additional context or explanation (Section 4).
The requirement for multiple agencies to inform individuals about ABLE programs could result in redundant communication efforts and wasteful spending if not coordinated effectively (Section 4).
The bill does not specify any funding sources or budget allocations for the implementation of these information dissemination requirements, raising questions about resource allocation (Section 4).
Authorization of a fixed sum of $50,000,000 per year does not account for potential changes in demand or cost over the fiscal years 2025 through 2029, which could lead to financial inefficiencies (Section 5).
The section does not specify the process or criteria through which applications for grants are evaluated, leading to potential bias or inconsistency in awarding grants (Section 5).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act establishes its official short title, which is the "ABLE Awareness Act".
2. Findings Read Opens in new tab
Summary AI
Congress has identified that the Achieving a Better Life Experience (ABLE) Act, which allows people with disabilities to save for qualifying expenses, is reaching its ten-year anniversary in 2024. While 8 million Americans are currently eligible for these accounts, only a small percentage have taken advantage of them, and efforts are being recognized to expand eligibility and usage, especially among veterans.
Money References
- Congress finds the following: (1) 2024 is the ten-year anniversary of the passage of the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 that made it possible for individuals with disabilities to save for qualified disability expenses using ABLE accounts. (2) As of March 2024, there were over 171,000 ABLE accounts nationwide, with almost $2,000,000,000 invested in those accounts. (3) There are an estimated 8,000,000 Americans eligible for ABLE accounts under the current eligibility requirements, and another 6,000,000 people will be eligible when the eligibility limitation for the age at which the disability occurred increases to age 46. (4) Of the 14,000,000 people who will be eligible to open ABLE accounts in 2026, approximately 2,200,000 are veterans. (5) Only 1.2 percent of people who are eligible and could open an ABLE have done so.
3. Purpose Read Opens in new tab
Summary AI
The purpose of this Act is to require federal agencies to inform individuals with disabilities about ABLE programs when they first join certain programs, and to provide states and regions with resources to promote the ABLE program as the eligibility criteria expand in 2026.
4. Directing agencies to inform people with disabilities about ABLE accounts Read Opens in new tab
Summary AI
The bill requires various federal agencies, including the Social Security Administration, Department of Veterans Affairs, and others, to inform individuals with disabilities about ABLE accounts, which are savings programs to help them save money without losing benefits. This information must be provided to individuals when they enroll in specific assistance programs, and the bill outlines amendments to existing laws to ensure compliance.
6321. ABLE programs Read Opens in new tab
Summary AI
The Secretary is required to inform individuals enrolling in programs under their administration about the availability of qualified ABLE programs, which are savings plans for people with disabilities. Additionally, they must provide information about resources like the ABLE National Resource Center and other organizations supporting these programs.
5. ABLE awareness grants Read Opens in new tab
Summary AI
The section allows the Secretary of the Treasury to give grants to states, tribal governments, and their agencies to raise awareness about ABLE programs and accounts, which help support individuals with disabilities. Eligible entities can use the grants for activities like media campaigns and events, and they must track how many new ABLE accounts are opened with the help of these funds; it also provides $50 million each year from 2025 to 2029 for this purpose.
Money References
- (f) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2025 through 2029.