ASSET LIMITS HURT POOR PEOPLE

A new survey of all 50 states by the New America Foundation determined that a family of three needs at least $4,773 in assets to survive for three months at a poverty level. But the foundation determined that many states, including Connecticut, trap many families in poverty by putting a ceiling on the worth of their assets, including money in the bank, a car, etc. This restriction discourages people receiving assistance from saving. Connecticut, like most states, imposes no asset limitation to apply for SNAP. But this could change –- during the recent debate on the House farm bill, Republicans proposed, but failed to pass, a $2,000 national asset limit for SNAP.

Connecticut does place a limit of $3,000 in savings or other money to qualify for Temporary Assistance for Needy Families.  And a TANF family’s car can be valued at no more than $9,500. Connecticut’s low-income heating assistance program, LIHEAP, has a much more generous asset limit: $10,000 for homeowners and $7,000 for everyone else.

Source:  Connecticut Mirror, 7/15/13, Asset Limits