HI HB868

Eliminates the asset limit eligibility requirement for Hawaii's Temporary Assistance for Needy Families (TANF) program.

Asset limits create perverse incentives for individuals to divest themselves of assets and discourage asset accumulation needed to escape poverty and achieve self-sufficiency.

Removing asset limits allows families to build financial savings and assets for retirement, reducing long-term dependence on government assistance and preventing returns to public assistance after job loss.

Five states (Alabama, Louisiana, Maryland, Ohio, and Virginia) have eliminated their TANF asset limits with little to no change in caseload and reduced administrative costs.

Committee recommends passage and referral to the Committee on Ways and Means; testimony received in support from the Department of Human Services, Office of Hawaiian Affairs, Legal Aid Society of Hawaii, and other organizations.