Press Releases

Today, U.S. Representative Matt Cartwright (D-PA-08) introduced the CSA Opportunity Act to enable families to save for their children’s post-secondary education without fear of losing access to vital resources like food and energy assistance.

“Families, already dealing with the devastating effects of the coronavirus pandemic, should not have to choose between investing in their children’s futures and keeping the lights on,” Cartwright said. “Children’s Savings Accounts are meant to help our kids, not punish families. When we force parents to choose between saving for college and receiving essential benefits, we punish fiscal responsibility and our children suffer in the long term. No one should be penalized for choosing to build a better future for their child.”

Over 1.3 million American children are born into families with negligible college savings. Studies show that children from low- and moderate-income families who save even small amounts are three to four times more likely to go to college and graduate than those without savings.

Children’s Savings Accounts (CSAs) are long-term savings or investment accounts that incentivize dedicated saving for post-secondary education. Accounts are seeded with an initial deposit and built by contributions that are matched through public-private partnerships. Unfortunately, CSAs can count against asset limits, otherwise known as savings penalties. These penalties adversely affect families enrolled in programs like Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), and Low-Income High Energy Assistance Program (LIHEAP).

The CSA Opportunity Act exempts CSAs from savings penalties in TANF, SNAP, SSI and LIHEAP.

This legislation is endorsed by Prosperity Now.

“Through this pandemic, families are at a treacherous crossroads—choosing between access to public benefits to help them survive day-to-day and savings to help them build a strong future,” said Gary Cunningham, President of Prosperity Now. “Currently, asset limits, also known as savings penalties, force families to make these impossible choices. Fortunately, the CSA Opportunity Act, introduced by Rep. Cartwright, will encourage families to save for their children’s futures without being in fear of losing access to nutrition, energy assistance and other benefits.”

Additional co-sponsors of this legislation in the U.S. House are: Rep. Eleanor Holmes Norton (DC), Rep. Raúl Grijalva (AZ-03).