Tony Hall: “I rise in support of S. 2206, the Community Opportunities & Educational Services Act. I support many of the provisions…”

“I rise in support of S. 2206, the Community Opportunities & Educational Services Act. I support many of the provisions in this bill which reauthorizes the Head Start, Community Services Block Grant and the Low-Income Home Energy Assistance Programs. However, I want to focus my remarks on the new demonstration program which will be created if this bill becomes law. Mr. Chairman, S. 2206 includes the text of H.R. 2849, the Assets for Independence Act which I introduced with Representative John Kasich. The language was added by an amendment offered in the Education and Work Committee by Representatives Mark Souder and Lynn Woolsey. This legislation authorizes $25 million for four years for the creation of Individual Development Accounts (IDAs) for poor families and individuals. IDAs are dedicated savings accounts, similar in structure to Individual Retirement Accounts, that can be used for purchasing a first home, paying for post-secondary education, or capitalizing a business. IDAs are managed by community organizations and are held at local financial institutions. Low income individuals make a contribution to the account which is then matched by private or public funds. Under the legislation, participants can have no more than $10,000 in assets (excluding their car and home) to qualify for the program. Federal money can only be used to match private money. In this way, the bill would leverage more private money and local involvement.”