S. 5186: Allowing Steady Savings by Eliminating Tests Act

This bill would change several federal, means-tested assistance programs by limiting or eliminating asset limits—rules that deny or reduce benefits based on how much money or other resources a household has saved.

What “asset limits” mean

Asset limits are eligibility tests that look at things like savings accounts, some property, or other financial resources. Under current rules in some programs, a person or family can lose eligibility even if their income is low enough to qualify, simply because they have too much in savings or other assets.

Main changes in the bill

• TANF-funded state programs: States would be prohibited from using asset or resource limits for families receiving benefits, assistance, or services under programs funded by Temporary Assistance for Needy Families (TANF) grants.
• SNAP (food assistance): The bill would remove federal asset tests from the Supplemental Nutrition Assistance Program, so households would no longer be denied SNAP based on savings or similar resources.
• LIHEAP (energy assistance): The bill would prohibit states from excluding households from LIHEAP eligibility solely because of the assets of one or more household members.
• SSI (Supplemental Security Income): The bill would raise the SSI resource limits to $20,000 for individuals and $10,000 for couples in 2026, and then increase those amounts over time based on inflation using the CPI-E measure.

How states would implement it

For TANF, SNAP, and LIHEAP, the bill allows a delay if a state needs new legislation to make the required changes. In that case, the state would not be treated as out of compliance until after the first regular legislative session following enactment, with special rules for states that have two-year legislative sessions.

Other provisions

• The bill includes findings stating that asset limits can discourage saving and use of regular banking services, and may make it harder for low-income families to build financial stability.
• It says Congress’s view is that certain federally funded means-tested public assistance programs should not use asset limits.
• It makes a number of technical and conforming changes to related federal laws so the revised rules fit together with existing eligibility and administration provisions.

Effective date

Unless a section says otherwise, the changes would apply to benefits for calendar months beginning 30 days after enactment. The SSI changes would be treated as if they took effect on January 1, 2026.

Relevant Companies

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