S-970 : Still Just a Bill

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The "Helping More Families Save Act" (S. 970) proposes to establish a temporary pilot program designed to enhance the existing Family Self-Sufficiency (FSS) program. Key provisions of the bill include:

• **Program Establishment:** Directs the Secretary of Housing and Urban Development (HUD) to select up to 25 eligible entities (such as public housing agencies and private owners of assisted housing) to manage escrow accounts for up to 5,000 families receiving housing assistance under Sections 8 or 9 of the United States Housing Act of 1937.
• **Escrow Account Mechanics:**
  • Eligible entities will establish interest-bearing escrow accounts.
  • Deposits into these accounts will equal any increase in rent paid by participating families that is directly attributable to increases in their earned income.
  • Entities may utilize existing Section 8 or 9 funds for these deposits, offset by the increased rent payments.
  • Families with adjusted incomes exceeding 80 percent of the area median income are not eligible for escrow deposits.
• **Flexible Withdrawals:** Families can withdraw funds (including interest) from their escrow accounts under several conditions, including ceasing welfare assistance, after 5 years of participation (up to 7 years if chosen), ceasing housing assistance earlier than 5 years, or for approved self-sufficiency goals.
• **Reduced Bureaucracy:** Unlike the standard FSS program, participating families are not required to complete a formal contract of participation or an individual training and services plan to be part of the pilot.
• **No Income Penalty:** Increases in earned income for families enrolled in the pilot program will not negatively impact their eligibility or benefit amounts for other programs administered by the Secretary of HUD.
• **Opt-Out Provision:** Families must be notified of their enrollment and have the explicit ability to opt-out of the pilot program without affecting their housing assistance.
• **Evaluation:** HUD is mandated to conduct a study and report to Congress within 8 years on the pilot program's effectiveness in promoting economic independence and the impact of supportive services.
• **Funding:** Authorizes $5,000,000 for fiscal year 2026 for technical assistance and program evaluation.
• **Termination:** The pilot program is set to terminate 10 years after the date of enactment.

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