Helping More Families Save Act

This proposal creates a test program to help families in public housing or using Section 8 save money as their earnings grow. Up to 25 housing groups can open interest-earning savings accounts for up to 5,000 families. When a family’s pay goes up and their rent rises, the amount of that rent increase is set aside in their account (like a savings “escrow”). Families over 80% of area median income can’t use the savings feature.

Families can usually take out their savings after they stop getting welfare and have been in the program for at least 5 years, or up to 7 years if they choose to keep going. They can take money earlier to meet a self-sufficiency goal, or if they leave housing assistance sooner. The savings earn interest. While in the program, increases in earned income won’t be counted against other benefits run by the same department.

• Who is affected

  • Families getting public housing or Section 8 help who join the pilot. You can’t be in this pilot and the Family Self-Sufficiency program at the same time, and you can opt out at any time. Your rent is still set under normal rules, and your housing help won’t be delayed, denied, or ended because you join or don’t join. You can recertify your income multiple times per year, and you don’t have to sign a special training plan to participate.

• What changes

  • Part of your rent increase caused by higher earnings is saved for you in an interest-bearing account, which you can withdraw under the rules above. The program aims to test how saving, plus coaching or services, affects income and independence; a federal study will review outcomes.

• When

  • The agency will pick participating housing groups within 18 months of the law taking effect. Accounts must open within 6 months after selection and stay open at least 5 years (up to 7, if the family chooses). A study is due within 8 years. The pilot ends 10 years after it starts.

• Funding

  • $5 million is authorized for fiscal year 2026 to provide technical help and to evaluate the pilot; funds stay available until used.