The Arc on the Reintroduction of ABLE Act Improvement Bills
By: Mike Nagel, Program Associate
Eight members of Congress have re-introduced three bipartisan bills to make improvements to the Stephen J. Beck, Jr. Achieving a Better Life Experience (ABLE) Act. These bills, listed below, are similar to three bills introduced last year:
- The ABLE Age Adjustment Act (R.1874/S.817) is sponsored by Representative Tony Cardenas (D-CA) in the House, with Representatives Cathy McMorris Rodgers (R-WA), Pete Sessions (R-TX), Christopher Smith (R-NJ), and James Langevin (D-RI) as original co-sponsors; and by Senator Robert Casey (D-PA) in the Senate, with Senators Richard Burr (R-NC) and Chris Van Hollen (D-MD) as original co-sponsors. This bill raises the age of onset of disability for eligibility in the program from before age 26 to before age 46.
- The ABLE Financial Planning Act (R.1897/S.816) is sponsored by Representative McMorris Rodgers in the House, with Representatives Sessions, Cardenas, Smith, and Langevin as original co-sponsors; and by Senator Casey in the Senate, with Senators Burr and Van Hollen in the Senate. This bill would allow a transfer of funds from a Section 529 College Savings Plan account to an ABLE account. However, funds transferred to the ABLE account would still count toward the annual contribution limit (currently $14,000).
- The ABLE to Work Act (R.1896/S.818) is sponsored by Representative McMorris Rodgers in the House, with Representatives Sessions, Cardenas, Smith, and Langevin as original co-sponsors; and by Senator Burr, with Senators Casey and Van Hollen as original co-sponsors. This bill would increase the annual contribution limit for individuals who work by the amount they earn, up to the federal poverty level (currently $11,770). When combined with the current annual contribution limit, this bill would allow annual contributions to an ABLE account of up to a total of $25,770 for people who work. Furthermore, it makes contributions to one’s own ABLE account eligible for a Saver’s Tax Credit. However, income earned will still count toward substantial gainful activity for SSI and Medicaid eligibility.
Last year, the Senate Finance Committee approved the ABLE Financial Planning Act and the ABLE to Work Act as amendments to a larger bill, the Retirement Enhancement and Savings Act of 2016 (S.3471). However, the bill did not reach the Senate floor, and no further action was taken. With the start of the 115th Congress in January, the bills must begin the legislative process again in both the House and Senate.
The Arc supports all three bills and believes they offer meaningful improvements to the ABLE
Act. However, on the basis of fairness and equity, The Arc opposes the movement of the ABLE to Work Act or ABLE Financial Planning Act before movement of the ABLE Age Adjustment Act. The ABLE Age Adjustment Act makes more individuals eligible for the program while the other two bills improve the program only for people who are currently eligible. When the ABLE Act was passed in 2014, there was no philosophical basis for limiting the program to those disabled before the age of 26. The bill had been amended to add the age restriction in order to minimize the fiscal impact; in response to disability community concerns, House leadership made commitments to begin restoring the eligibility age as soon as possible. Many people with disabilities who advocated for the law were made ineligible by the age limitation; fairness and equity demand that efforts go to expand eligibility before making the law better for those already eligible.
Many of The Arc’s constituents are among those excluded due to the age of onset requirement. Intellectual disability and developmental disabilities begin before age 26 by definition. However, not all people with IDD are considered to have the level of severity which allows eligibility for Supplemental Security Income (SSI) or Social Security disability programs—the standard used for ABLE accounts. However, they may reach the necessary severity level, and possible eligibility for the ABLE program, as they age and acquire additional limitations, depending on whether the ABLE program age of onset is increased.
The Arc will continue to support all three bills, but we emphasize that the ABLE Age Adjustment Act should be passed before or together with the other bills.