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Floor Speech

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Mr. REED. Madam President, today I am introducing the Helping More Families Save Act with Senator Britt. This bipartisan legislation would help more families in HUD-assisted housing build savings and improve their financial security by creating a pilot program for Family Self- Sufficiency, FSS, universal escrow accounts.

The FSS Program was established under the National Affordable Housing Act of 1990 to help low-income families boost savings and improve their professional, educational, and financial standing. In 2018, I worked with then-Senator Roy Blunt to expand the program to cover more households. Today, millions of public housing residents. Housing Choice Voucher Program participants, and residents of project-based rental assistance, PBRA, housing are eligible for FSS.

FSS provides two key tools for its participants. First, households work with FSS coordinators to develop long-term financial, professional, or educational goals. FSS coordinators also help connect participants with resources, training, and employment opportunities. Second, the program encourages FSS families to save by providing them with an interest-bearing escrow account. Participants who increase their incomes deposit a portion of their addditional earnings into their escrow account instead of paying higher rent, as is typically required under federally subsidized housing programs. Upon graduation from the FSS Program, families can use their escrowed savings to pay for job-related expenses, move to private market housing, buy a home, or save for the future.

After more than 30 years, FSS has become a proven financial independence program. Indeed, in 2021 27 percent of FSS graduates no longer needed Federal rental assistance within 1 year of leaving FSS, while 11 percent of graduates were ultimately able to purchase their own home, FSS graduates with escrow savings, on average, had approximately $9,495 in their account upon leaving the program--a substantial sum for low-income families.

Despite the program's success and broad eligibility, program participation was effectively capped at about 70,000 enrollees in 2023 because there is simply not enough Federal funding for the required FSS corordinators.

The Helping More Families Save Act would help more Americans access the program by creating a anew universal escrow pilot. Under the bill, public housing agencies, PHAs, and PBRA property owners could offer a limited number of additional households escrow accounts identical to those under the current FSS Program without having to wait for an FSS coordinator to be funded by the Federal Government. Although PHAs and PBRA property owners would not be required to offer Coordinator services to these participants, we expect many will work to offer appropriate counseling and support on their own or with outside partners. Moreover, we expect that this pilot will show that those enrolled in the program will be successful and make wise decisions.

If successful, the pilot program could help more low-income families improve their financial security, achieve economic independence, and even purchase their own homes, all with minimal cost to the Federal Government.

This is a commonsense, bipartisan proposal that has the potential to help lift more American families out of poverty. It is a win for families, the Federal budget, and our economy. I thank Senator Britt for coleading this legislation and Compass Working Capital and LISC for their support. I urge our colleagues to cosponsor the Helping More Families Save Act and support its passage. ______

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