HR4385-119

What This Bill Does

The Helping More Families Save Act creates a 10-year pilot program to help low-income families build savings while receiving housing assistance. The program allows up to 25 housing agencies across the country to establish special escrow savings accounts for up to 5,000 families who receive Section 8 vouchers or live in public housing. When participating families earn more income from work, the resulting increase in their rent payment is deposited into an interest-bearing escrow account instead of simply going to the housing agency. Families can access these savings after they stop receiving welfare benefits and meet certain time requirements (5-7 years), without the usual bureaucratic requirements like signing contracts or completing training plans.

Who Benefits and How

Low-income families receiving housing assistance are the primary beneficiaries. When they increase their earnings through work, they don't lose all that extra income to higher rent - instead, it accumulates in an escrow account that becomes theirs to keep. This creates a real pathway to building wealth and achieving financial independence. Financial institutions also benefit from managing up to 5,000 new interest-bearing escrow accounts, generating fee income and deposits. Public housing agencies and private landlords who participate gain flexibility to use their existing program funds to make escrow deposits, and they receive federal technical assistance funding to help implement the program.

Who Bears the Burden and How

Federal taxpayers will pay $5 million in fiscal year 2026 to fund technical assistance and program evaluation. Housing agencies and private landlords who choose to participate will face increased administrative work - they must establish and manage escrow accounts, provide detailed notifications to families, track income recertifications that can happen multiple times per year instead of just annually, and give families the option to opt out. HUD staff will bear significant new responsibilities, including establishing the entire pilot program within 18 months, selecting the 25 participating entities, developing program standards, and conducting an 8-year study to evaluate effectiveness.

Key Provisions

• Authorizes HUD to select up to 25 housing agencies or private Section 8 landlords to participate in the pilot program, ensuring geographic diversity across urban and rural areas in different states
• Requires participating agencies to deposit rent increases from earned income into interest-bearing escrow accounts for enrolled families, using existing Section 8 or public housing funds
• Allows families to access their escrow savings after ceasing welfare assistance and waiting at least 5 years, or earlier if they lose housing assistance or need funds for approved self-sufficiency goals
• Caps participation at families earning less than 80% of area median income and ensures earned income increases don't count against eligibility for other federal benefit programs
• Eliminates the requirement to sign a contract of participation or complete an individual training and services plan, removing barriers that exist in the traditional Family Self-Sufficiency program
• Protects participating families by prohibiting housing assistance from being delayed, denied, or terminated based on their decision to participate or not participate in the pilot
• Mandates an 8-year evaluation study to be submitted to Congress assessing the program's effectiveness in helping families achieve economic independence and the impact of coaching and support services