Authors: Gene Falk, Specialist in Social Policy
Abstract: Individual Development Accounts (IDAs) are savings accounts to help low-income families and
persons save for specified purposes, usually education, purchase of a home, or to start a business.
Current IDA programs match an individual's contributions, much like retirement 401(k) accounts.
The Assets For Independence (AFI) Act, enacted by Congress in 1998, specifically authorizes
IDA demonstration programs. Authorization for the AFI programs expired at the end of FY2003,
though Congress continued to appropriate money for the program. The conference agreement on
H.R. 3288, the omnibus appropriation bill for FY2010, provides $24.025 million for AFI
programs. AFI has been funded at that level since FY2008.
States are also given authority to use funds from the Temporary Assistance for Needy Families
(TANF) block grant to fund IDA programs. The Deficit Reduction Act of 2005 (P.L. 109-171)
"reauthorized" TANF through FY2010, making no changes to TANF's rules for IDAs. This report
will be updated to track legislative or appropriations activity.
Pages: 6
Date: December 10, 2009
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