Helping More Families Save Act

S. 970 would create a 10-year pilot program to help low-income families build savings while receiving federal housing assistance. The bill would allow the Department of Housing and Urban Development to select up to 25 housing authorities and property owners to participate. These entities would establish interest-bearing escrow accounts for up to 5,000 families, depositing funds equal to any rent increases that result from the families earning more income. Participating families would be able to withdraw their accumulated savings, plus interest, after they stop receiving welfare assistance or after five years, whichever comes first, though they may withdraw earlier for certain self-sufficiency goals.

The program is designed to encourage work and savings without penalizing families for earning more income. Families earning more would normally see their rent increase, but under this pilot, that additional rent payment would go into their escrow account instead of to the housing authority. Participation would be voluntary, and families could opt out at any time without losing their housing assistance. The bill would authorize $5 million in funding for fiscal year 2026 to support implementation and evaluation. The program would be evaluated after eight years to assess its effectiveness in helping families achieve economic self-sufficiency.