Witness traces ABLE Act’s roots, urges Vermont to lift age limit and explore housing uses for accounts

Phil, a program manager and parent of a 27‑year‑old with Down syndrome, told the Vermont House Committee on Commerce & Economic Development on Jan. 13 that the federal ABLE Act began as a grassroots effort and needs further change for people with disabilities to benefit fully.

Phil recounted recruiting congressional sponsors and building a bipartisan coalition to get the ABLE concept enacted, and he described why the final law adopted a 529‑style vehicle rather than an IRA‑style account. He said early design ambitions (transferability, no Medicaid payback) were pared back in negotiation and that successive compromises left the program less flexible than advocates hoped.

Why it matters: Phil argued that current rules—most notably the federal $100,000 cap on account balances and age‑at‑eligibility limits—reduce the ABLE accounts’ usefulness for covering housing and other high‑cost needs. He told the committee the $100,000 limit and age thresholds were political compromises that should be revisited to expand practical access for Vermonters with disabilities.

Phil described concrete concerns and recommendations. He told lawmakers Vermont residents enroll through the state treasurer’s shared ABLE platform and urged the committee to (1) consider a state‑level tax credit or direct state deposit to seed accounts, (2) push for removing the arbitrary federal age restriction, (3) examine ways ABLE balances might be used to support housing (for example, as deposits or collateral), and (4) ask the treasurer and program administrators about fees and investment oversight to keep costs low for account holders.

On data and implementation: Committee members asked whether Vermont has state‑level data on who holds ABLE accounts; Phil said the national totals (he cited roughly $3 billion in accounts and about 223,000 accounts as national figures) exist but state breakdowns are not readily available and he offered to request that detail from program administrators. He also confirmed the $100,000 cap and some age restrictions stem from federal law, while state actions such as tax incentives or targeted deposits appear possible.

Representative Edie (committee questioner) confirmed the $100,000 figure was interpreted as a federal limit and pressed for clarity on treasurer‑held account administration and fees; Phil said Vermont’s treasurer uses a shared platform and that fee levels and investment options vary by program. Phil encouraged the committee to work with VHFA and the treasurer’s office on housing and marketing solutions to increase takeup among eligible Vermonters.

Phil closed by offering continued assistance and follow‑up with local stakeholders in Addison County and state housing officials. The committee thanked him and took a short recess; no formal vote or motion occurred at the session.

Quote selections: Phil told the committee that early in the process he was struck by a simple framing from an advocate that launched the effort: according to Phil, "it is ridiculous that I can save all the money that I need to for my daughter without Down syndrome, but the one with, I can't save a dime." He also pressed the committee on the $100,000 cap and age limits as policy constraints that Vermont could help address at the state level.

What’s next: Phil offered to collect state‑level enrollment data and to meet with Vermont housing and finance agencies. Committee members agreed to follow up with the treasurer’s office and VHFA to explore feasible steps such as tax credits, marketing campaigns, and whether program mechanics could better support housing needs for people with disabilities.