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LB 236: Appropriate funds to establish an Individual Development Account pilot project (IDA)

As introduced: LB 236 requires the Department of Labor, in conjunction with the Department of Health and Human Services, to establish a pilot project relating to individual development accounts. The project is intended to expand the use of individual development accounts, which assist working individuals and families in achieving long-term self-sufficiency, by providing matched funds for earned-income savings. Savings may be used for first-time home purchase, investment in a business or self-employment venture, post secondary education, or training for the participant. Eligibility for participation in the pilot project would include, but is not limited to, an income at or below 200% of the federal poverty level. Funds for the pilot will be available under the federal Temporary Assistance to Needy Families program and other public and private sources. The pilot project is required to be geographically balanced, including both rural and urban participants.

Introducing Senator(s): Howard; Conrad

Committee: Health and Human Services

Committee Hearing Date: March 15, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: LB236 would require the Department of Labor (DOL) to establish a pilot project to create individual development accounts to assist working families. The pilot project would not last more than 5 years.  Most of the funding for the project come from the TANF cash fund.  $72,071 General Fund, $300,000 Cash Fund in FY 2013-14 and $83,130 General Fund, $300,000 Cash Fund in FY 2014-15.

Voices for Children’s Position: Support (see our testimony)

Research:  IDA Issue Brief

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