HR5468-118

1. Short title This Act may be cited as the Children’s Savings Accounts Offer Parents Plenty Of Reasons To Understand and Invest in Tuition Yearly Act or the CSA OPPORTUNITY Act.

2. Definitions In this Act: The term children’s savings account program refers to a program created or organized by a State, local, or Federal Government, a 501(c)(3) nonprofit organization, a school district, or a college or university for the purpose of creating children’s savings accounts. The term children’s savings account means a savings or investment account or trust created as part of a children’s savings account program exclusively for the purpose of paying the qualified expenses of only individuals, who, when the account is created, have not attained 18 years of age, provided that it has the following requirements: If a savings or investment account is created— the account is held in a federally insured financial institution, or a State-insured financial institution if a federally insured financial institution is not available, or in an investment account by a custodian or third-party owner on behalf of the individuals, if the custodian or third-party owner is a State, local, or Federal Government, a 501(c)(3) nonprofit organization, a school district, or a college or university, the assets of the account will not be commingled with other property except in a common children’s savings account, trust fund, or other common investment fund, and any amount in the account that is attributable to a seed deposit, matched deposit, or other incentive provided by the children’s savings account program may be paid or distributed from the account only for the purpose of paying qualified expenses of the individual. If a trust is created or organized, the written governing instrument creating the trust contains the following requirements: The trust is created on behalf of the individuals, and the trustee is a State, local, or Federal Government, a 501(c)(3) nonprofit organization, a school district, or a college or university. The assets of the trust will be invested in accordance with the direction of the trustee. The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund. Any amount in the trust that is attributable to a seed deposit, matched deposit, or other children’s savings account program incentive may be paid or distributed from the trust only for the purpose of paying qualified expenses of the individual. The term qualified expenses means, with respect to an individual, expenses that are— incurred after the individual receives a secondary school diploma or its recognized equivalent, and for— postsecondary educational expenses (as defined in section 529 of the Internal Revenue Code of 1986) of the individual, the purchase of a first home by the individual, or the capitalization of a business owned by the individual.

101. Interest in, and distribution from children’s savings accounts required to be disregarded under the TANF program Section 408(a) of the Social Security Act (42 U.S.C. 608(a)) is amended by adding at the end the following: A State to which a grant is made under section 403 shall disregard the value of funds in any children’s savings account (as defined in section 2 of the CSA OPPORTUNITY Act), including accrued interest or other earnings thereon, in determining the eligibility of, and the amount or type of assistance to be provided to an individual or family under the State program funded under this part. Section 409(a) of such Act (42 U.S.C. 609(a)) is amended by adding at the end the following: If the Secretary finds that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 408(a)(13) during the fiscal year, the Secretary shall reduce the grant otherwise payable to the State under section 403(a)(1) for the succeeding fiscal year by the percentage specified in subparagraph (B) of this paragraph. The reduction required under subparagraph (A) shall be— not less than 1 nor more than 2 percent; not less than 2 nor more than 3 percent, if the finding is the second consecutive finding made pursuant to subparagraph (A); or not less than 3 nor more than 5 percent, if the finding is the third or a subsequent consecutive such finding. Section 409(b)(2) of such Act (42 U.S.C. 609(b)(2)) is amended by striking or (13) and inserting (13), or (17). (13)Requirement to disregard value of children’s savings accountsA State to which a grant is made under section 403 shall disregard the value of funds in any children’s savings account (as defined in section 2 of the CSA OPPORTUNITY Act), including accrued interest or other earnings thereon, in determining the eligibility of, and the amount or type of assistance to be provided to an individual or family under the State program funded under this part.. (17)Penalty for failure to disregard value of children’s savings accounts (A)In generalIf the Secretary finds that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 408(a)(13) during the fiscal year, the Secretary shall reduce the grant otherwise payable to the State under section 403(a)(1) for the succeeding fiscal year by the percentage specified in subparagraph (B) of this paragraph. (B)Amount of reductionThe reduction required under subparagraph (A) shall be— (i)not less than 1 nor more than 2 percent; (ii)not less than 2 nor more than 3 percent, if the finding is the second consecutive finding made pursuant to subparagraph (A); or (iii)not less than 3 nor more than 5 percent, if the finding is the third or a subsequent consecutive such finding..

102. Exclusion of children’s savings accounts from resources under the SSI program Section 1613(a) of the Social Security Act (42 U.S.C. 1382b(a)) is amended— by striking and at the end of paragraph (16); by striking the period at the end of paragraph (17) and inserting ; and; and by inserting after paragraph (17) the following: the value of funds in any children’s savings account (as defined in section 2 of the CSA OPPORTUNITY Act), including accrued interest or other earnings thereon. Section 1613(e)(5) of such Act (42 U.S.C. 1382b(e)(5)) is amended by inserting of this Act or section 2 of the CSA OPPORTUNITY Act before the period. (18)the value of funds in any children’s savings account (as defined in section 2 of the CSA OPPORTUNITY Act), including accrued interest or other earnings thereon..

201. Exclusion of children’s savings accounts from resources under the supplemental nutrition assistance program Section 5(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended by adding at the end the following: The Secretary shall exclude from financial resources under this subsection the value of funds in any children’s savings account, including accrued interest or other earnings thereon. For purposes of subparagraph (A), the term children’s savings account has the meaning given such term in section 2 of the CSA OPPORTUNITY Act. (9)Exclusion of Children’s Savings Accounts From Allowable Financial Resources (A)ExclusionThe Secretary shall exclude from financial resources under this subsection the value of funds in any children’s savings account, including accrued interest or other earnings thereon. (B)Children’s savings accountFor purposes of subparagraph (A), the term children’s savings account has the meaning given such term in section 2 of the CSA OPPORTUNITY Act..

301. Exclusion of certain accounts from calculation under the Low-Income Home Energy Assistance Program Section 2605(f) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended by adding at the end the following: The determination of the income or assets of a household for purposes of eligibility under this section shall be made without regard to the value of funds in any children’s savings account, including accrued interest or other earnings thereon. For purposes of subparagraph (A), the term children’s savings account has the meaning given such term in section 2 of the CSA OPPORTUNITY Act. (3)Exclusion of certain accounts from calculation (A)ExclusionThe determination of the income or assets of a household for purposes of eligibility under this section shall be made without regard to the value of funds in any children’s savings account, including accrued interest or other earnings thereon. (B)Children’s savings accountFor purposes of subparagraph (A), the term children’s savings account has the meaning given such term in section 2 of the CSA OPPORTUNITY Act..