Over $4 Million Awarded for Individual Development Accounts

The Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services (HHS) today announced 16 Assets for Independence (AFI) program grants totaling $4,365,363. These grants will fund financial education and provide economic support for low-income individuals and families across the nation.

“This initiative will help low-income families save money, accumulate assets, and become more independent,” said Daniel C. Schneider, HHS acting assistant secretary for children and families. “That is the American Dream.”

AFI provides five-year grants of up to $1,000,000 to nonprofit organizations and state, local and tribal governments. Grant recipients help low-income participants set up and use special savings accounts called individual development accounts (IDAs). Participants save money in IDAs to purchase a first home, pursue higher education or support a small business. Every dollar saved up to a set amount is matched by AFI grant funds. Currently, nearly 400 AFI projects are underway across the country, and more than 53,000 families have used AFI-supported IDAs to save money toward their identified goals.

“Through the Assets for Independence program, the Bush Administration is demonstrating that low-income individuals and families can and do save earned income,” said Josephine B. Robinson, director of ACF’s Office of Community Services, which administers the AFI program. “The individuals our grantees assist have shown substantial benefit from their asset acquisitions, proving that asset building is a strong tool in combating poverty.”

For more information about ACF, visit www.acf.hhs.gov.

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Note: All ACF news releases, fact sheets and other materials are available at www.acf.hhs.gov/opa/index.html.