Advocates propose automatic enrollment to expand Family Self‑Sufficiency program

Advocates for low‑income families told the Joint Committee on Housing that a pilot to automatically enroll eligible households in the federal Family Self‑Sufficiency (FSS) program could dramatically increase participation and help families convert rising rental payments into savings.

Compass Working Capital and other nonprofit partners testified in support of House Bill 4,568, which would allow eligible public‑housing agencies and voucher administrators to enroll households by default while preserving an opt‑out. The FSS program uses existing federal housing subsidies so that when a household’s income rises, the incremental increase in tenant rent is deposited into a savings account the family can use later for goals such as homeownership, education or emergency savings.

James Stewart of Compass described local pilots and national evidence that automatic enrollment dramatically increases participation in voluntary programs: "On average, FSS graduates are saving over $10,000 in the program," Stewart said, and noted Compass has philanthropic support to deliver a pilot if the committee authorizes the approach.

Witnesses emphasized the bill would not compel housing authorities to participate; it instead creates an optional pilot to test delivery models that could scale participation and better leverage available federal funding. Committee members asked about privacy, administrative burden and how savings accounts would be managed; advocates said nonprofit partners and regional administrators could provide coaching and account management.

No committee vote was held. Supporters asked for a favorable report to allow limited pilots that could demonstrate whether default enrollment increases take‑up and measurable asset accumulation for low‑income households.