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New bills aim to make it easier for disabled individuals to save money

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Congress enacted legislation a decade ago to create accounts to help people with disabilities save money.

Yet only a fraction of the 8 million Americans who are eligible for the ABLE accounts — named for the Achieving a Better Life Experience Act — are using them, according to Sen. Bob Casey, D-Pa., who serves as the chairman of the Special Committee on Aging.

The senator on Thursday plans to introduce several new bills that would allow for eligible individuals to accumulate more money in ABLE accounts, while also raising awareness of them as an option to save for the disability community.

ABLE accounts let disabled individuals save money outside of asset limit requirements set by federal-assistance programs while also accessing certain tax advantages.

Funds in ABLE accounts must be used toward expenses to maintain or improve health, independence or quality of life for disabled or blind individuals. Investments in ABLE accounts grow tax deferred, while withdrawals are tax free, as long as they are used for qualified expenses.

An additional 6 million individuals may be eligible for ABLE accounts in 2026, when eligibility requirements for the accounts will move from having a disability before age 26 to before age 46.

To date, more than 171,000 people with disabilities have saved an average of over $11,000 each through ABLE accounts, according to Casey.

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Casey is pushing for Congress to enact more reforms to make it easier to save in ABLE accounts.

Last year, he proposed a bill called the ABLE MATCH Act that would create a federal dollar-for-dollar match to help lower-income disabled individuals save money in those accounts.

“Disability is in everyone’s family, regardless of which side of the aisle you’re on,” said Thomas Foley, executive director of the National Disability Institute.

“We’re hopeful that Senator Casey and his colleagues on both sides of the aisle will recognize that this is just another step to help people with disabilities lead more independent and financially secure lives,” Foley said.

Here’s what the three new bills set to be introduced in Congress on Thursday would do.

Let employers contribute to ABLE accounts

While many employers offer 401(k) plan matches, people with disabilities may not be able to take advantage of the benefit perk without risking that money counting against their asset limits for federal benefits programs.

Casey is proposing a bill, the ABLE Employment Flexibility Act, to make it possible for employers to contribute to an employee’s ABLE account instead of 401(k) accounts.

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That way, an employee could be eligible to receive matching contributions without jeopardizing federal benefits. The money could be used toward retirement.

“ABLE accounts are a great way to save for retirement for someone with a disability who qualifies,” Foley said.

Allow direct deposits into ABLE accounts

A second bill, the ABLE Direct Deposit Act, would make it so employers or government programs can make direct deposits to ABLE accounts.

“Including direct deposit for ABLE accounts would make it easier for anyone with a disability to participate” in these accounts, Foley said.

Help inform people about ABLE programs

Because many of the individuals who are eligible to open ABLE accounts have not done so, a third proposal, the ABLE Awareness Act, seeks to educate more people about the accounts.

The bill calls for requiring both federal and state agencies to inform eligible individuals about ABLE accounts when they enroll in certain benefits programs.

In addition, the bill also calls for the creation of a grant program to allow states or groups of states to apply for funds to advertise ABLE programs in the media and on billboards. The grant program would be funded at $50 million per year for four years.

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Trump plan to freeze funding stymies Biden-era energy rebates for consumers

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Some states have stopped disbursing funds to consumers via Biden-era rebate programs tied to home energy efficiency, due to a Trump administration freeze on federal funding enacted in January.

The Inflation Reduction Act, passed in 2022, had earmarked $8.8 billion of federal funds for consumers through two home energy rebate programs, to be administered by states, territories and the District of Columbia.

Arizona, Colorado, Georgia and Rhode Island — which are in various phases of rollout — have paused or delayed their fledgling programs, citing Trump administration policy.

The White House on Jan. 27 put a freeze on the disbursement of federal funds that conflict with President Trump’s agenda — including initiatives related to green energy and climate change — as a reason for halting the disbursement of rebate funds to consumers.

That fate of that freeze is still up in the air. A federal judge issued an order Tuesday that continued to block the policy, for example. However, it appears agencies had been withholding funding in some cases in defiance of earlier court rulings, according to ProPublica reporting.

In any event, the freeze — or the threat of it — appears to be impacting state rebate programs.

“Coloradans who would receive the Home Energy Rebate savings are still locked out by the Trump administration in the dead of winter,” Ari Rosenblum, a spokesperson for the Colorado Energy Office, said in an e-mailed statement.

The U.S. Department of Energy and the White House didn’t return a request for comment from CNBC on the funding freeze.

In some states, rebates are ‘currently unavailable’

Consumers are eligible for up to $8,000 of Home Efficiency Rebates and up to $14,000 of Home Electrification and Appliance Rebates, per federal law.

The rebates defray the cost of retrofitting homes and upgrading appliances to be more energy efficient. Such tweaks aim to cut consumers’ utility bills while also reducing planet-warming carbon emissions.

California, the District of Columbia, Maine, Michigan, New Mexico, New York, North Carolina and Wisconsin had also launched phases of their rebate programs in recent months, according to data on an archived federal website.

All states and territories (except for South Dakota) had applied for the federal rebate funding and the U.S. Department of Energy had approved funding for each of them.

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The Arizona Governor’s Office of Resiliency said its Home Energy Rebates programs would be paused until federal funds are freed up.

“Due to the current federal Executive Orders, memorandums from the White House Office of Management and Budget, and communications from the U.S. Department of Energy, funding for all Efficiency Arizona programs is currently unavailable,” it said in an announcement Friday.

Rhode Island paused new applications as of Jan. 27 due to “current uncertainty” with Inflation Reduction Act funding and executive orders, according to its Office of Energy Resources.

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The Georgia Environmental Finance Authority launched a pilot program for the rebates in fall 2024. That program is ongoing, a spokesperson confirmed Monday.

However, the timeline for a full program launch initially planned for 2025 “is delayed until we receive more information from the U.S. Department of Energy,” the Georgia spokesperson explained in an e-mail.

However, not all states have pressed the pause button: It appears Maine is still moving forward, for example.

“The program remains open to those who are eligible,” Afton Vigue, a spokesperson for the Maine Governor’s Energy Office, said in an e-mail.

The status of rebates in the eight other states and districts to have launched their programs is unclear. Their respective energy departments or governor’s offices didn’t return requests for comment.

‘Signs of an interest’

While the Trump administration on Jan. 29 rescinded its memo ordering a freeze on federal grants and loans — two days after its initial release — the White House said the freeze nonetheless remained in full force.

Democratic attorneys general in 22 states and the District of Columbia filed a lawsuit against the Trump administration, claiming the freeze is unlawful. The White House has claimed it is necessary to ensure spending aligns with Trump’s presidential agenda.

David Terry, president of the National Association of State Energy Officials, said he is optimistic the rebate funding will be released to states soon.

“For these two particular programs, I do not think [the freeze] will stymie the programs,” Terry said. “I see signs of an interest in moving them forward and working with the states to implement them.”

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Social Security Fairness Act benefit increases to arrive this spring

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Lump sum payments to begin arriving in February

In a new update released on Tuesday, the SSA said it will begin issuing retroactive payments in February. Most people will receive the one-time payment by the end of March, according to the agency.

The SSA plans to process the increase to monthly benefits starting in April.

The new timeline “supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” Social Security acting commissioner Lee Dudek said in a statement.

“The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation,” Dudek said. “The American people deserve to get their due benefits as quickly as possible.”

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Among those affected include some teachers, firefighters and police officers in certain states; federal employees who are covered by the Civil Service Retirement System and people who worked under foreign social security systems, according to the Social Security Administration.

What affected beneficiaries should know

Retroactive payments, which most people should receive by the end of March, will be deposited directly into bank accounts on file with the Social Security Administration.

All affected beneficiaries should receive a notice by mail from the Social Security Administration with details about their retroactive payment and new benefit amount. Those notices should come two to three weeks after the retroactive payments, according to the agency.

If your direct deposit information or current mailing address are up to date with the agency, no action is needed, according to the agency. If you want to double check the information the agency has on file, you may sign into your personal online account or call the agency.

If you want to ask about the status of your retroactive payment, the Social Security Administration urges you to hold off until April.

Beneficiaries should also wait until after they have received their April monthly check before contacting the agency to ask about their new benefit amount.

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The average IRS tax refund is 32.4% lower this season. Here’s why

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The average tax refund is 10.4% lower than last year according to the latest Internal Revenue Service data, and inflation is taking more of those dollars.

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The average tax refund this year is down 32.4% compared to last year, according to early filing data from the IRS. 

Tax season opened on Jan. 27, and the average refund amount was $2,169 as of Feb. 14, down from $3,207 about one year prior, the IRS reported on Friday. That figure reflects current-year refunds only.

However, the Feb. 14 filing data doesn’t include refunds receiving the earned income tax credit or additional child tax credit, which aren’t issued before mid-February, the IRS noted. The previous year’s filing data included tax returns claiming these credits. The value of these tax breaks can be substantial, even resulting in five-figure refunds, in some cases.

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Typically, you can expect a refund when you overpay taxes throughout the year via paycheck withholdings or quarterly estimated payments. By comparison, there’s generally a tax bill when you haven’t paid enough.

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The latest filing statistics come amid mass layoffs for the agency as Elon Musk’s so-called Department of Government Efficiency, or DOGE, continues to cull the federal workforce

It’s unclear exactly how the staffing reduction could impact future taxpayer service. But experts recommend double-checking returns for accuracy to avoid extra touch points with the agency.

“Don’t call the IRS looking for your refund,” said Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals. 

You can check the status of your refund via the agency’s “Where’s My Refund?” tool or the IRS2Go app, which is “available 24 hours a day,” O’Saben said.

Typically, the agency issues refunds within 21 days of a return’s receipt. But some returns require “additional review,” which can extend the timeline, according to the IRS.

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