Sponsors (13)
The bill improves benefit eligibility and financial stability for many low-income households by excluding common insurance premiums from income/resource tests, but it increases costs and administrative burdens for state/local governments and insurers and could introduce some targeting inequities.
Low-income individuals (including SNAP, Medicaid, and TANF applicants and recipients) will have premiums for auto, home/renter, and flood insurance excluded from countable income and resources, which can increase eligibility or benefit amounts.
Households (particularly homeowners) that pay flood insurance for their primary residence will have those premiums explicitly protected so those payments won't jeopardize disaster-aid interactions or means-tested benefit eligibility.
Low-income households (renters and homeowners) will have necessary risk-management costs (insurance premiums) recognized in benefit assessments, which can help stabilize household finances and reduce short-term financial strain.
State and local governments will likely face higher caseloads and increased benefit costs as more people become eligible or receive larger benefits, raising program expenditures and potentially requiring additional funding or budget adjustments.
Insurers, program administrators, and state agencies will face added administrative complexity and compliance costs to verify premium payments and apply the exclusions, increasing operational burdens.
Low-income people may experience uneven treatment or reduced access to targeted assistance because excluding certain insurance payments could lower measured income for programs tied to contributions or premiums, creating gaps or inequities if other insurance types remain countable.
Based on analysis of 2 sections of legislative text.
Excludes payments for specified auto, homeowner/renter, and flood insurance from income/resource counts used to determine eligibility or benefit amounts for federally funded programs.
Official title: To require payments for certain insurance policy premiums to be taken into account in determining eligibility for benefits or assistance provided through Federal funds, and for other purposes.
Introduced September 26, 2025 by Rashida Tlaib · Last progress September 26, 2025
Excludes an individual’s payments for certain insurance policies (auto, homeowner/renter/liability/life/health tied to homeowner or renter status, and flood insurance for a principal residence) from countable income and resources when determining eligibility or benefit levels for any federal program or any state or local program financed in whole or in part with federal funds. It also adopts certain defined terms from federal motor vehicle law to clarify meanings used in the bill.