Oppressive poverty persists among people with disabilities in the United States. According to the 1995 Current Population Survey, 39.7 percent of working-age persons with disabilities live in poverty. Sadly, as disability advocates, this statistic may not surprise us. What is surprising is the scarcity of effective new programs addressing economic inequity. Be that as it may, there is one new rising star in the mainstream antipoverty movement; it is called the Individual Development Account (IDA) savings program.

What Is an Individual Development Account?

It may sound too good to be true. A savings program helping people to buy a home, start a business or, go back to school. With each deposit an additional amount is added that is from one to three times the original deposit. Throw in financial literacy training, support from a community-based organization, and peer support, and you have an IDA program. Participants only need to meet the general requirement of being within 200 percent of poverty and have some source of earned income. The entire program is free of charge. It is available and nationwide.

There is no catch. And, IDAs are proven effective. Not only do IDAs help people become self-sufficient; they also build optimism. According to the Center for Social Development at Washington University in St. Louis, as many as 93 percent of current IDA participants reported they feel more confident about their futures and 85 percent said they felt more in control of their lives. With self-empowerment as its cornerstone, it is easy to see the marriage between IDAs and the independent living philosophy. The program is a natural fit with the disability community.

Are people with disabilities participating in IDA programs?

No organization or governmental body has formally counted the number of people with disabilities participating in IDAs. However, a recently-released study from the Institute for Women’s Policy Research found that nearly half of single mothers receiving TANF (Temporary Assistance to Needy Families) have a disability or a disabled child. The Center on Budget and Policy Priorities also reports significant participation by persons with disabilities in TANF. Since many IDA programs serve the TANF population, it is reasonable to assume that a large number of people disabilities participate in IDAs.

Can I participate if I receive (SSI)?

Supplemental Security Income (SSI) recipients can participate in IDA programs without losing their benefits due to asset limits. IDA savings — including the match and any interest earned — are not counted as “assets” for benefit consideration as long as the program is funded under the federal law Assets for Independence Act (AFIA). It is simple. If you receive SSI, simply ask the IDA program administrators if they receive funding from AFIA. If they do, you can participate.

Find the IDA Program Nearest You

IDA programs are fairly new. Across the nation there are only roughly 20,000 accounts in about 400 programs. The Corporation for Enterprise Development lists IDA providers and others who work in the asset development field at idanetwork.org; you can find the resource list by clicking on the “state” pages. Contact the IDA program nearest you and ask if they are currently recruiting participants and what their specific requirements for participation are.

If you are unable to find an IDA program near you or one that is currently recruiting, hope is not lost. A new federal bill called the Savings for Working Families Act (SFWA) may pass in 2003 enabling banks to directly open an additional 300,000 accounts nationwide beginning in 2004.

Check out these available resources

World Institute on Disability (WID) - WID provides training, technical assistance and produces publications on IDAs and disability-related issues. For more information, contact info@wid.org.

Corporation for Enterprise Development - For more information on IDAs

Center for Social Development, Washington University in St. Louis - For research on IDAs and the asset development movement in general

IDA Network - To locate IDA providers in the United States

“How Do IDAs Affect Benefit Eligibility” article - For an excellent article on the effects of IDAs on all public benefits