Senate Passes Senators Katie Britt, Eric Schmitt, Bob Casey Legislation for Individuals with Disabilities and their Families

WASHINGTON, D.C., September 20, 2024 – U.S. Senators Katie Britt (R-Ala.), Eric Schmitt (R-Mo.), and Bob Casey’s (D-Pa.) legislation, the Ensuring Nationwide Access to Better Life Experience (ENABLE) Act, recently passed the United States Senate.

The ENABLE Act would allow individuals with disabilities and their families to save and invest through tax-free savings accounts while protecting eligibility to federal programs like Medicaid and Supplemental Security Income (SSI).

This week, Senator Britt participated in a roundtable with Senator Schmitt (R-Mo.) to discuss and raise awareness for the ENABLE Act. During the roundtable, Senator Britt emphasized the importance of this legislation and welcomed Alabama State Treasurer Young Boozer, who also participated in the discussion.

“Every child deserves a pathway to reach their full potential, and this legislation would enable just that—by providing opportunities to invest and save towards their futures. I am incredibly proud to see the ENABLE Act pass the Senate. I have seen firsthand across the state of Alabama through our own ABLE plan how this program truly changes lives. I look forward to seeing this program continue to empower families and enhance economic opportunities for Americans and Alabamians with disabilities,” said Senator Britt.

“Today is a monumental day, with the critically important ENABLE Act passing the Senate. When I originally entered public service, it was to fight for people like my son Stephen, who was born with a rare genetic disease, has epilepsy, is on the autism spectrum, and is non-verbal. This legislation is the perfect example of what I entered public service to do. The ENABLE Act helps make life better for those with disabilities by allowing them and their families to continue saving and investing through tax-free savings accounts. This legislation empowers those individuals to secure employment and actively participate in society. I am thankful for the support of my colleagues in helping to ensure the passage of this critically important legislation,” said Senator Eric Schmitt. 

The ENABLE Act is supported by National Down Syndrome Society, the ABLE Savings Plan Network (ASPN), the National Association of State Treasurers, BPC Action, the Jewish Federations of North America, the American Network of Community Options and Resources (ANCOR), Autism Speaks, the Autistic Self Advocacy Network, the National Down Syndrome Congress, the Kansas Council on Developmental Disabilities, the National Association of Councils on Developmental Disabilities (NACDD), ABLE Today, the Muscular Dystrophy Association, and CURE SMA.

Senators John Boozman (R-Ark.), Peter Welch (D-Vt.), Tim Kaine (D-Va.), Chris Van Hollen (D-Md.), Tommy Tuberville (R-Ala.), Markwayne Mullin (R-Okla.), Tom Cotton (R-Ark.), Ron Wyden (D-Ore.), Amy Klobuchar (D-Minn.), Mike Lee (R-Utah), Chris Coons (D-Del.), Jon Ossoff (D-Ga.), Alex Padilla (D-Calif.), Ben Cardin (D-Md.), John Cornyn (R-Texas), Jerry Moran (R-Kan.), Tom Carper (D-Del.), and Thom Tillis (R-N.C.) are also cosponsors of the bill.

BACKGROUND:

• In February 2017, the State of Alabama’s Treasury Office launched the Alabama ABLE Savings Plan
• There are over 162,000 Achieving a Better Life Experience (ABLE) accounts (or 529A accounts under the Internal Revenue Code). Created in 2014, these accounts allow people with disabilities and their families to save and invest through tax-free savings accounts without losing eligibility for federal programs like Medicaid and Supplemental Security Income (SSI).
• There are three ABLE provisions set to expire in 2025:
  • ABLE to Work: An individual with a disability who is employed can contribute an additional amount to his or her ABLE account. This additional contribution cannot be greater than either: the prior year’s federal poverty level for a one-person household ($15,060 in 2024), or the beneficiary’s yearly compensation.
  • ABLE Saver’s Credit: An individual with a disability who make qualified contributions to their ABLE account can qualify for a nonrefundable saver’s credit of up to $1,000.
  • 529 to ABLE rollover: An individual with a disability may rollover from a 529 education savings account to an ABLE account that are less than or equal to the annual ABLE contribution limit are not subject to income taxation.
• Individuals with these ABLE Accounts have saved $1.74 billion annually, which goes to show just how successful this program has been. Thanks to this life changing program, people with disabilities are empowered to secure employment and actively participate in society.
• The ENABLE Act permanently enshrines these provisions into law, providing certainty to those individuals and their families and their families

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