Pilot Program Lets 5,000 Families Keep Rent Increases as Savings: How the 'Helping More Families Save Act' Works

The new Helping More Families Save Act sets up a pilot program designed to tackle one of the biggest hurdles facing families on housing assistance: the moment they start earning more money. This program, officially the Family Self-Sufficiency Escrow Expansion Pilot Program, aims to help up to 5,000 families currently receiving Section 8 or Section 9 housing assistance build real savings.

The Escrow Account: A Work Incentive

Here’s the deal: When a family is on housing assistance, if their income goes up, their required rent payment usually goes up too. This can create a 'benefit cliff' where working harder doesn't actually put more money in their pocket. This bill flips that script. It requires participating organizations—up to 25 of them—to open an interest-bearing escrow account for each family in the pilot. When a family’s earnings increase, causing their rent payment to rise, that increase is deposited directly into their savings account instead of going toward the housing authority's general funds. This means every extra dollar earned translates into real, untouched savings for the family.

Protecting Savings and Benefits

This pilot includes a critical protection for participants: any increase in income while enrolled will not count against them when determining eligibility or benefit amounts for any other federal program run by the Secretary. This is huge. It means families can pursue better jobs or more hours without the immediate fear of losing food assistance or other vital aid. Essentially, this provision removes the penalty for increasing earnings, providing a clear path toward financial stability without forcing a sudden drop-off in necessary support.

When Can Families Access the Cash?

So, when can they cash out? The bill outlines a few specific off-ramps for accessing the saved funds, plus interest. Families can withdraw the money once they stop receiving general welfare assistance, or if they stop receiving housing assistance (Section 8 or 9) before the pilot ends. For those who stay in the program, they can take the money out between five and seven years after the account was opened. Plus, the bill allows for earlier withdrawals if the money is used for an approved self-sufficiency goal—think paying for job training, a down payment on a car, or starting a small business—though the specific criteria for what counts as 'good cause' or a 'self-sufficiency goal' is left up to the entity or the Secretary to define later.

The Fine Print and What’s Next

While this is a strong incentive for economic mobility, there are a few things to note. First, the program is limited to 5,000 families in 25 organizations, meaning it’s a small test run. Second, families whose adjusted income is already over 80% of their area's median income are excluded, keeping the focus on those most dependent on current assistance levels. Entities must be selected within 18 months of the bill becoming law, and the entire pilot is set to run for 10 years. Before it wraps up, the Secretary must submit a report to Congress detailing how effective the program was in helping families achieve economic independence. This study will be key to determining if this savings model should be expanded nationwide.