Senator Coons, colleagues introduce legislation to remove asset limits blocking working families from public assistance

WASHINGTON – U.S. Senator Chris Coons (D-Del.) and seven of his Democratic colleagues introduced the Allowing Steady Savings by Eliminating Tests (ASSET) Act of 2026, which would protect low-income Americans from losing access to programs like the Supplemental Nutrition Assistance Program (SNAP) and other government assistance programs because of arbitrary asset limits by increasing their access to essential public assistance programs. Representative Jimmy Gomez (D-Calif.) introduced companion legislation in the House of Representatives. As inflation skyrockets due to the Trump administration’s harmful policies, government assistance programs are becoming more important than ever. Temporary Assistance for Needy Families (TANF), SNAP, and the Low-Income Home Energy Assistance Program (LIHEAP) help low-income families, particularly those with children, meet basic needs like food and heating. Social Security’s Supplemental Security Income (SSI) program reduces extreme poverty among the elderly and people with disabilities. Families’ eligibility for these programs is often limited by both income and assets. The ASSET Act would prohibit states from applying asset tests for TANF, SNAP, and LIHEAP, and raise the asset limits for SSI from $2,000 to $10,000 for an individual and from $3,000 to $20,000 for a couple, with both limits indexed to inflation. Income limits would remain allowable. A delay in implementation is permitted for states that need to pass legislation to adjust to new regulations. Asset limits penalize Americans who have built savings for education, emergencies, and retirement, or have bought transportation that they need to get to work and earn enough to get out of these programs. Removing asset limits on SNAP alone increases the odds that lower-income adults have at least $500 in their savings by 8% and have a bank account by 5%. It also reduces the number of individuals cycling on and off the program by 26%. Nine states have eliminated TANF asset limits, 37 states and Washington, D.C. have eliminated SNAP asset tests, and only two states have LIHEAP asset tests. SSI is administered by the federal government, and the asset limit has not been updated or adjusted for inflation since 1989. Inconsistencies in how asset eligibility is determined among these programs and across the states can confuse eligible recipients, deterring them from saving or stopping them from accessing assistance programs that they’re entitled to. “Asset limits on public assistance programs prevent working families from saving for the future or accessing the benefits they rightfully deserve. A savings account or a car are not assets, they’re necessities in every home,” said Senator Coons . “As President Trump and Republicans in Congress are making it harder to access essential public assistance programs, we need to fight back, and I’m proud to introduce this bill that will help more working families access the social safety net when they need it.” “Burdensome eligibility rules make it harder for families to get ahead. The ASSET Act removes outdated savings limits from programs that help families afford food, utilities, and other basic needs. It also updates the savings limit for people with disabilities and the elderly, which hasn’t changed since 1989. That means families can save for an emergency or build toward a better future without losing the support they need,” said Representative Gomez . “I grew up in a family where both my parents worked multiple jobs to make ends meet, we couldn’t even afford health insurance. The idea that federal social programs can punish a family like mine for trying to build savings goes against the core values of these programs.” In addition to Senator Coons, the ASSET Act of 2026 is also cosponsored by U.S. Senators Tim Kaine (D-Va.), Brian Schatz (D-Hawaii), Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Jack Reed (D-R.I.), Tammy Baldwin (D-Wis.), and Kirsten Gillibrand (D-N.Y.). The bill is endorsed by Prosperity Now, the Local Initiatives Support Corporation (LISC), the Center for Law and Social Policy (CLASP), Alliance to End Hunger, the National Women’s Law Center Action Fund, National Association of Disability Representatives (NADR), UnidosUS, The Arc, Grantmakers in the Arts, Americans for the Arts. “The ASSET Act recognizes a simple but important reality: families should not have to choose between building a modest emergency fund and accessing the public benefits that help them through difficult times,” said Marisa Calderon, president & CEO of Prosperity Now . “For decades, Prosperity Now has worked to help families build savings, strengthen financial security, and build long-term financial stability. Yet outdated asset limits continue to penalize responsible saving and leave households more vulnerable to financial shocks. By preserving income eligibility while eliminating outdated asset tests, the ASSET Act ensures that public benefits no longer undermine families’ efforts to build financial stability. No family should be penalized for doing the responsible thing. This legislation brings public policy in line with the basic principle that saving for the future should be encouraged, not punished.” “For more than 20 years, LISC has supported a national network of Financial Opportunity Centers® to enable working families to build prosperity through personalized financial coaching paired with employment and wrap-around support services, including help accessing public benefits. We know from experience that communities thrive when families are empowered to build financial resilience and pursue long-term goals, and that asset tests unfairly penalize low-income homeowners and can discourage savings. We applaud Senator Coons for addressing this issue by introducing the ASSET Act to ensure low-income families can continue to receive the support needed to achieve financial self-sufficiency,” said Matt Josephs, senior vice president of policy, Local Initiatives Support Corporation (LISC) . “No one should have to choose between keeping food on their table today and saving for an emergency tomorrow. By removing outdated asset penalties, the ASSET Act gives our nation’s artists the financial dignity to build a stable future without risking the vital public safety net they need to survive,” said Erin Harkey, CEO, Americans for the Arts . Read the full text of the bill here . Read a one-pager of the bill here .