Committee sends HB 26 to floor to allow treasurer to join national ABLE consortium

A state House committee voted to send House Bill 26 to the House floor with a “do pass” recommendation after hearing testimony that the measure would let the Idaho State Treasurer contract with a national consortium to offer ABLE (529A) accounts to Idahoans with disabilities.

The bill, Treasury officials said, would amend Idaho Code section 56,708 to allow the Idaho State Treasurer to enter into an agreement with a national ABLE consortium, establish an ABLE account advisory council and authorize financial literacy outreach conducted by the Treasurer’s Office and the Idaho State Independent Living Council. Treasurer Julie Ellsworth said the change would “make the Idaho ABLE account program less expensive for participants and provide greater oversight and protection.”

Supporters told the committee the change would reduce costs for individual account holders, keep money accessible in Idaho and expand options ahead of federal eligibility changes in 2026. Several residents who use ABLE accounts or care for family members with disabilities said state participation would simplify access and improve independence.

Ellsworth, Idaho State Treasurer, told the committee the bill updates a 2017 statute that recognized ABLE (Achieving a Better Life Experience) 529A accounts and would allow Idaho to join multi-state consortiums that spread administrative overhead. She said many Idaho residents now open accounts in other states and pay higher fees, and that joining a consortium could reduce those fees. Ellsworth stated that current out-of-state fees are “45 to 59 basis points” and that through a partnership the cost could fall to “19 to 33%.” She said account fees would be paid by individual account holders, not the state, and that any contract would be vetted with legal counsel.

The bill also would establish an advisory council the Treasurer described as a regular oversight board to check program operations and surface problems early. Ellsworth said the Treasurer’s Office would perform outreach and that the Idaho State Independent Living Council would help with financial-literacy efforts.

Testimony in support included parents and disability advocates who described practical benefits. Jeremy Arnold, who said he is a parent of two sons receiving Supplemental Security Income, described the relief of being able to save without jeopardizing benefits: “the stress that was lifted off of my wife and I knowing that we can legally put money into a savings account, and it won't be considered an income is imperative.”

Lisa Anderson, advocacy director for AARP Idaho, told the committee AARP supports the bill as a way for people with disabilities to “save and manage their money without worrying about losing the critical benefits they need.” Tara Rowe, who said she holds an out-of-state ABLE account, described the administrative difficulty of withdrawing funds from Tennessee — “this is like a week long process” — and said a state program would make it easier to pay for transportation, medical items and other disability-related expenses.

Bridal Shipley, a social worker and parent of children with disabilities, said ABLE accounts protect beneficiaries from a choice between saving and retaining essential benefits: “If they save or earn too much money, they lose access to critical services like Medicaid or SSI…This is where ABLE accounts can make a profound difference.” Other speakers, including Dwight Johnson and Mary Ann Shannon, described the accounts’ role in supporting employment and independent living.

Representative Haley moved to send the bill to the floor with a do-pass recommendation. Representative Kaler said he would vote no, citing a desire to reduce the size of government, and asked that his opposition be recorded. The chair announced the motion passed and recorded that the chair voted aye; Representative Scoggs was listed to present the bill on the House floor.

Votes at a glance: the committee adopted a motion to send House Bill 26 to the floor with a do-pass recommendation. Representative Haley moved the motion; a second was not specified in the transcript. Representative Kaler stated he would vote no; the chair announced the chair voted aye and declared the motion passed. The transcript does not record a full roll-call tally.