Pilot Program Helps 5,000 Families Save Rent Increases Instead of Losing Benefits

The Helping More Families Save Act establishes a new, temporary program designed to tackle the infamous “benefits cliff” for people receiving housing assistance. This bill sets up the Family Self-Sufficiency Escrow Expansion Pilot Program, which lets up to 5,000 families currently using Section 8 or Section 9 housing assistance put their increased rent payments into a savings account instead of handing it over to the landlord.

The Benefits Cliff Bypass

Here’s how the pilot works: When a family in the program gets a raise or a better job, their rent often increases because housing assistance is tied to income. Under this pilot, the amount of that rent increase is deposited into an interest-bearing escrow account for the family by the housing entity (Sec. 2). Crucially, the housing entity can use its existing funds for this deposit, because the family is now paying more rent to offset that exact amount. Essentially, instead of punishing higher earnings by raising housing costs, the bill redirects that extra housing cost into the family’s savings.

This is a massive shift because it provides a real financial incentive to earn more. For too long, families on assistance have faced the dilemma of turning down a raise because the resulting loss of benefits or increase in rent cancels out the extra income. This program, limited to families whose income is 80% or less of the area median income, aims to let them build an asset base while they work toward full self-sufficiency.

Saving for the Future, Today

One of the most important provisions is that any extra income earned while participating in the pilot won't count against a family when determining eligibility for any other program run by the Secretary (Sec. 2). This means earning more won't automatically trigger a loss of other aid, ensuring the financial gains are real. Think of a single parent who takes on extra shifts: under this pilot, their increased earnings won't just disappear into higher rent and lost food assistance; they’ll see a tangible benefit in their savings account.

Families can withdraw their savings, including interest, under several conditions. The most straightforward are after 5 to 7 years of participation, or if they stop receiving housing assistance altogether. They can also access the funds earlier if the managing entity approves the withdrawal for a “self-sufficiency goal” (Sec. 2). While the bill doesn't precisely define what counts as a self-sufficiency goal—leaving some room for interpretation—it likely covers things like education costs, buying a car for work, or making a down payment on a house.

Limited Scope, Defined Timeline

This is a pilot program, meaning it’s small and temporary. It will select up to 25 organizations to run the accounts for a maximum of 5,000 families, and the entire program will end 10 years after enactment (Sec. 2). This limited scope means that while the program is highly beneficial for those who get in, the vast majority of eligible families won't have access. Furthermore, families cannot participate in this new pilot if they are already in the standard Family Self-Sufficiency (FSS) program, which requires specific training and contractual obligations.

Participation is entirely voluntary, and families must be clearly informed that they can opt out at any time without losing their housing assistance. This protects families from being forced into a savings structure that might not work for their specific financial situation. The Secretary is required to study the program’s effectiveness and report to Congress about eight years in, which will determine if this model is successful enough to be expanded nationally.