The ABLE Act

For too long, individuals with disabilities and their families have been forced into an unfair choice—stay poor and rely on government assistance or work to be more self-sufficient and completely give up much-needed government benefits.  

This week, the U.S. House of Representatives did something about that unfairness by passing the Achieving a Better Life Experience (ABLE) Act.  This act gives the disabled an important third option—the option to participate in the labor force without being forced off of the social safety net.  

Currently, because of antiquated laws, Americans living with disabilities cannot have more than $2,000 in assets before putting their Medicaid benefits and Supplemental Security Income (SSI) in jeopardy.  This arbitrary cap keeps many folks with disabilities from working, saving and otherwise living the American Dream.    

Under the ABLE Act, Americans with disabilities will no longer be held to this arbitrarily low asset standard.  Instead, they can set up tax-free ABLE Accounts - similar to the 529 savings accounts many families use to save for future education expenses.  ABLE Accounts will allow those with physical and mental challenges to save for their education or workforce training.  They can also use the account to cover medical expenses not covered by private insurance or Medicaid.  Whatever their choice, those with physical and mental challenges will now have access to the same types of flexible savings tools already used by other Americans to help pay for education, health care and retirement expenses.   

The ABLE Act is not only great for individuals with disabilities and their families; it is also good for the economy.  It opens up the workforce and allows those with physical and mental challenges to participate in society without being beholden to the government.  

Americans with disabilities will now have the chance to earn money, save for themselves and break through the financial glass ceiling that has unfairly held many of them back.  That is a win-win for everybody. I’m proud to have cosponsored and voted for this common-sense, bipartisan legislation. It is my hope that this important bill moves quickly through the Senate and onto the President’s desk.