U.S. Rep. Erik Paulsen (R-Minn.) reacted on Wednesday to the overwhelming approval of the Achieving a Better Life Experience Act (ABLE), one of the first pieces of legislation that he co-sponsored after being elected in 2009.
The ABLE Act, which passed the House by a vote of 404-17, allows people with disabilities to set up savings accounts with no tax on the earnings. The accounts, similar to a 529 college savings account, also do not impact the Medicaid and Social Security threshold of less than $2,000 in assets to receive disability benefits.
“Raising a child with a disability can be emotionally and financially draining,” Paulsen said. “While individuals with disabilities are living longer and more productive lives than ever before, they still face barriers to finding and holding employment, living independently, and taking care of their daily needs. The ABLE Act makes it easier for these families to bear this financial burden.”
Qualified expenses for ABLE accounts would include education, housing, transportation, training, assistive technology and personal support. Total annual contributions to the account would be capped at $14,000.
The cost of operating the program have been offset in the bill.
The bill is expected to also easily pass the Senate, where 74 Senators have signed on as sponsors.