AUGUSTA - The Legislature gave final approval on Monday to a measure from Rep. Michele Meyer, D-Eliot, that will empower families to build long-term economic security by increasing the amount of money they can save without losing access to benefits under the Temporary Assistance for Needy Families Program, or TANF.
LD 945 would raise the asset limit from its current level of just $2,000 to $10,000 per family. The bill would also exempt from the asset limit one vehicle for each licensed driver in the family. Currently, only one family vehicle is exempt from asset limits, despite strong evidence that access to reliable transportation plays a critical role in securing employment and pursuing education or workforce training.
"The goal of the TANF program is to help Maine families attain economic security, but the program's current asset limits run counter to this objective," said Meyer. "The current limits are so low that they prevent families from saving enough to cover even a modest unexpected expense like a car repair or move to a new apartment. Without savings, such an expense can spiral into a loss of employment or housing, putting a struggling family right back at square one. This measure makes reasonable changes to TANF asset limits so families can escape the cycle of financial instability."
Research shows that increasing or even eliminating TANF asset limits does not increase the number of families receiving support under the program. In some states, caseloads have dropped considerably following the removal of asset limits.
"Asset limits make it impossible for families accessing support to follow the conventional wisdom about saving and 'getting ahead,' which then feeds into the stigmatizing idea that they keep making '"bad choices, said Kathryn Easter, housing services coordinator for the Maine Coalition to End Domestic Violence, at a public hearing on the measure in April. "The expectations and asset limits of public assistance are what keep survivors [of domestic violence] trapped in a cycle of poverty."
The bill now heads to the governor's desk.
Meyer is serving her third term in the Maine House. She represents House District 150, which includes Eliot and parts of both Kittery and South Berwick.
Contact:
Brian Lee [Meyer], c. 305-965-2744