Sponsors (2)
Official title: To amend the Internal Revenue Code of 1986 to provide matching payments for ABLE account contributions by certain individuals, and for other purposes.
Introduced July 21, 2026 by Debbie Dingell · Last progress July 21, 2026
The bill expands and subsidizes ABLE accounts to help people with disabilities—especially low-income individuals—build protected savings for disability-related expenses, improving financial security and targeting gaps, while increasing federal costs, implementation complexity, privacy risks, and uncertainty when temporary grants end.
People with disabilities — especially lower-income beneficiaries — would receive refundable federal matching contributions into ABLE accounts (up to 100% on contributions, phased down by income, on up to $2,000/year), substantially increasing their tax-advantaged savings for disability-related expenses.
People with disabilities would be better able to pay for housing, education, health care, and other qualified disability expenses from ABLE accounts without jeopardizing means-tested benefits like Medicaid or SSI.
Federal grants to states and funding for outreach and state match programs would increase access to ABLE accounts and likely raise account uptake and continuity, reducing enrollment barriers.
The matching contributions and state grant program increase federal spending (including an explicit $5 million/year for state grants FY2027–2031), creating additional taxpayer cost and potential budgetary pressures.
Average ABLE account balances are modest, so relying on expanded ABLE use may leave households with large extra disability-related costs under-supported; the program alone is unlikely to close substantial poverty or cost gaps.
Implementing the refundable match and new reporting requirements will create administrative complexity and costs for the IRS, state ABLE administrators, and program designees and could require system changes and beneficiary guidance (including to navigate interactions with means-tested benefits).
Based on analysis of 6 sections of legislative text.
Creates a refundable federal match for ABLE account contributions for lower-income beneficiaries, adds demographic reporting, and authorizes $5M/year in state grant funding (FY2027–2031).
Creates a refundable federal matching credit for qualified contributions to ABLE accounts for designated beneficiaries with incomes up to 200% of the Federal Poverty Level, with a default 100% match phased down as income rises. Requires ABLE program reports to include demographic data and authorizes grants to states to promote ABLE accounts and fund the matching payments, with $5 million per year authorized for FY2027–FY2031. The bill changes the Internal Revenue Code to pay the match into a beneficiary’s ABLE account after a tax return claims the credit, sets contribution and distribution testing rules, and directs Treasury to fund state outreach and implementation through competitive grants.