S. 4498

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4498 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 4498

To amend the Internal Revenue Code of 1986 to make expiring ABLE 
provisions permanent, improve accessibility and education for families, 
and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 12, 2026

Mr. Moran (for himself, Mr. Van Hollen, Mr. Tillis, and Ms. Klobuchar) 
introduced the following bill; which was read twice and referred to the 
Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to make expiring ABLE 
provisions permanent, improve accessibility and education for families, 
and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``ABLE Tomorrow Act''.

SEC. 2. FINDINGS.

Congress finds the following:
(1) People with disabilities are more than two and half 
times as likely to live in poverty than people without 
disabilities. In every State, people with disabilities 
experience higher poverty rates than both the rate for people 
without disabilities and the overall State poverty rate. 
Households containing an adult with a disability that limits 
their ability to work require more income to obtain the same 
standard of living as similar households without a member with 
a disability.
(2) The Stephen Beck, Jr., Achieving a Better Life 
Experience Act of 2014 provided for qualified ABLE programs, 
which provided eligible people with disabilities the 
opportunity to open tax-advantaged savings accounts which they 
can use for meeting qualified disability-related expenses 
without the risk of losing eligibility for certain benefits 
they need to maintain health, independence, and quality of 
life.
(3) Since the establishment of ABLE accounts, legislative 
changes have been made to increase access to, uptake, and 
sustainability of the program, including increasing the 
disability onset age from before age 26 to before age 46 to 
qualify for an ABLE account, allowing working ABLE account 
holders to contribute additional amounts to the annual 
contribution limit, creating a Saver's credit allowance for 
ABLE contributions, and allowing for rollovers of 529 accounts.
(4) As of 2025, there were hundreds of thousands of ABLE 
accounts open in the United States with several million 
individuals with disabilities eligible for ABLE accounts. This 
number is expected to nearly double and as amendments made by 
the SECURE 2.0 Act of 2022 take effect beginning January 2026.

SEC. 3. PURPOSES.

The purposes of this Act are--
(1) to encourage and assist individuals with disabilities 
who have fewer resources to save using ABLE accounts;
(2) to increase uptake and continued utilization of ABLE 
accounts by people with disabilities, especially those 
individuals receiving benefits under the Medicaid program 
established under title XIX of the Social Security Act and the 
program for supplemental security income benefits established 
under title XVI of such Act; and
(3) to help ensure the success and financial stability of 
ABLE account holders and the whole of the ABLE account program.

SEC. 4. REPEAL OF TRANSFER TO STATE UPON DEATH OF DESIGNATED 
BENEFICIARY.

Section 529A(f) of such Code is amended to read as follows:
``(f) Prohibition on State Adjustment or Recovery of Medical 
Assistance.--Notwithstanding section 1917(b) of the Social Security Act 
or any other provision of law, no State may seek adjustment or recovery 
of any medical assistance correctly paid on behalf of a designated 
beneficiary under a State Medicaid Plan from the ABLE account of such 
designated beneficiary, regardless of whether the ABLE account is part 
of the designated beneficiary's estate.''.

SEC. 5. MODIFICATIONS TO CONTRIBUTION LIMITATIONS.

(a) Repeal of Limitation on Rollovers.--Section 529(c)(3)(C)(i) of 
such Code is amended by striking the matter following subclause (III).
(b) Exception to Contribution Limit for Certain Lump Sum 
Payments.--
(1) In general.--Section 529A(b) of such Code is amended by 
adding at the end the following new paragraph:
``(8) Exception to contribution limit for certain lump sum 
payments.--
``(A) In general.--In the case of a contribution to 
a qualified ABLE program from a third-party trust, a 
contribution of amounts received by the designated 
beneficiary as proceeds of a life insurance contract, 
or an amount distributed from a qualified tuition 
program (as defined in section 529(b)(1)) that is not 
includible in gross income of the distributee under 
section 529(c)(3)(C)(i)(III), subsection (b)(2)(B) 
shall not apply.
``(B) Limitation.--Subparagraph (A) shall not apply 
with respect to any contribution if such subparagraph 
has applied to any other contribution in any taxable 
year to a qualified ABLE program of the qualified 
beneficiary.''.
(2) Conforming amendments.--
(A) Section 529A(b)(2)(B) of such Code is amended 
by inserting ``paragraph (8) or'' after ``Except in the 
case of contributions under'' in the matter preceding 
clause (i).
(B) Section 529A(b)(6) is amended by inserting 
``and any contributions described in paragraph (8)(A)'' 
after ``State agency or instrumentality thereof''.

SEC. 6. DELAY OF SUSPENSION OF BENEFITS.

Section 103(b)(1) of the Stephen Beck, Jr., ABLE Act of 2014 is 
amended by inserting ``, and the suspension shall begin with the 
benefits payable for the 1st calendar month that begins after the 2-
month period that begins with the date the individual receives notice 
from the Commissioner of Social Security that the benefits are to be so 
suspended'' before the period.

SEC. 7. PROTECTING WORKING ABLE INDIVIDUALS FROM LOSING BENEFITS 
BECAUSE OF RETIREMENT PLAN RULES.

(a) In General.--Section 414 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
``(dd) ABLE Account Contributions.--
``(1) In general.--An applicable employer plan (as defined 
in subsection (v)(6)(A)) which is a defined contribution plan 
shall not be treated as failing to meet any requirement of this 
title solely because the plan provides that an eligible ABLE 
individual may elect for a plan year that employer 
contributions which would otherwise be made under the terms of 
the plan for such plan year shall (in lieu of contribution to 
the plan) be contributed by the employer to a qualified ABLE 
program described in section 529A on behalf of such eligible 
ABLE individual.
``(2) Treatment of contributions.--
``(A) No deduction for amounts contributed to able 
account.--Except as provided in subparagraph (B), a 
contribution to a qualified ABLE program pursuant to an 
election under paragraph (1) shall not be treated as a 
contribution to an applicable employer plan.
``(B) Application of nondiscrimination rules.--
Under rules prescribed by the Secretary, for purposes 
of applying sections 401(a)(4), 401(k)(3), 401(k)(12), 
401(k)(13), 401(m)(2), 403(b)(12), 408(k)(3), 
408(p)(2)(A)(iii), 408(p)(2)(B), 410, and 416, 
contributions made to a qualified ABLE program pursuant 
to an election under paragraph (1) shall be treated as 
if such contributions were made to the plan.
``(3) Universal availability.--Paragraph (1) shall not 
apply unless the plan provides that the election described 
therein is available to all eligible ABLE individuals who are 
eligible to participate in the plan.
``(4) Cash or deferred arrangement.--A plan shall not fail 
to be treated as including a qualified cash or deferred 
arrangement described in section 401(k)(1) solely because such 
plan provides for the election described in paragraph (1).
``(5) Eligible able individual.--For purposes of this 
subsection, the term `eligible ABLE individual' means an 
employee who, as of the first day of a plan year, is an 
eligible individual within the meaning of section 529A(e)(1) 
for the taxable year containing such first day of the plan 
year.
``(6) Treatment of permissive withdrawals.--An eligible 
ABLE individual may direct amounts eligible for withdrawal from 
an eligible contribution arrangement pursuant to section 414(w) 
to be contributed to a qualified ABLE program described in 
section 529A on behalf of such eligible ABLE individual.''.
(b) Treatment as Beneficiary Contribution.--Section 529A(b)(7) of 
the Internal Revenue Code of 1986 is amended by redesignating 
subparagraph (B) as subparagraph (C) and by inserting after 
subparagraph (A) the following new subparagraph:
``(B) Employer contributions.--Contributions made 
to a qualified ABLE program by an employer on behalf of 
a designated beneficiary described in this paragraph 
pursuant to paragraph (1) or (6) of section 414(a) 
shall be treated as made by the designated 
beneficiary.''.
(c) Clarification of Availability of Employer Contributions.--
Section 529A(e) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
``(7) Employer contributions.--An employer of an eligible 
individual may contribute to any qualified ABLE program for 
which the eligible individual is the designated beneficiary, 
including through a contribution matching a contribution made 
by such eligible individual to the qualified ABLE program.''.
(d) Deduction for Contributions Remitted by Employer to a Qualified 
ABLE Program.--Not later than 1 year after the date of the enactment of 
this Act, the Secretary of the Treasury shall--
(1) amend the regulations under section 162 of the Internal 
Revenue Code of 1986 to confirm that contributions made by an 
employer to a qualified ABLE program described in section 529A 
of such Code on behalf of an eligible ABLE individual described 
in section 414(dd)(5) of such Code who is an employee of such 
employer shall be considered a reasonable allowance for 
salaries or other compensation for personal service if such 
contribution for a year, taking into account all other 
contributions to such qualified ABLE program, does not exceed 
the maximum contribution described in section 529A(b)(2)(B) of 
such Code with respect to such individual; and
(2) update the publications issued for employers to 
encourage employers offering a retirement plan with automatic 
enrollment to notify employees who elect not to contribute to 
the plan and who may be eligible to contribute to a qualified 
ABLE program to notify such employees of the possibility of a 
contribution under section 529A(b)(2)(B)(ii) of such Code.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the 
amendments made by this section shall apply to plan and taxable 
years beginning after the date of the enactment of this Act.
(2) Clarifications.--The amendment made by subsection (c) 
and the amendments made pursuant to subsection (d)(1) shall 
apply to plan and taxable years beginning before, on, or after 
the date of the enactment of this Act.
(f) Model Amendment Authority.--The Secretary of the Treasury (or 
such Secretary's delegate) shall promulgate model amendments which 
plans may adopt to implement contributions to qualified ABLE programs 
pursuant to the amendments made by this section.

SEC. 8. DIRECTING AGENCIES TO INFORM PEOPLE WITH DISABILITIES ABOUT 
ABLE ACCOUNTS.

(a) Social Security Administration.--
(1) In general.--Beginning 180 days after the date of 
enactment of this Act, the Commissioner of Social Security 
shall provide the information described in paragraph (3) to any 
individual who is receiving any of the following on or after 
such date:
(A) A supplemental security income benefit under 
title XVI of the Social Security Act (42 U.S.C. 1381 et 
seq.).
(B) A disability insurance benefit under section 
223 of the Social Security Act (42 U.S.C. 423).
(C) A monthly insurance benefit under section 202 
of the Social Security Act (42 U.S.C. 402) based on 
such individual's disability (as defined in section 
223(d) of such Act (42 U.S.C. 423(d))).
(2) Provision of information upon redetermination or 
overpayment.--Beginning 180 days after the date of enactment of 
this Act, the Commissioner of Social Security shall, in 
addition to providing the information described in paragraph 
(3) in accordance with paragraph (1), provide such information 
to any individual receiving a benefit described in paragraph 
(1)--
(A) whenever such individual's eligibility for such 
benefit is redetermined; and
(B) whenever such individual is found to have 
received an overpayment of such benefits due to the 
individual having resources that exceed the amount 
established under subparagraph (A) or (B) of section 
1611(a)(3) of the Social Security Act (42 U.S.C. 
1382(a)(3)), as applicable to the individual.
(3) Information on able accounts.--The information 
described in this paragraph is the following:
(A) Information on the existence of--
(i) qualified ABLE programs as defined in 
section 529A of the Internal Revenue Code of 
1986; and
(ii) resources for people with 
disabilities, such as the ABLE National 
Resource Center, the National Association of 
State Treasurers, and ABLE Today.
(B) Instructions on how to open an ABLE account (as 
defined in section 529A of the Internal Revenue Code of 
1986).
(b) Department of Veterans Affairs.--
(1) In general.--Chapter 63 of title 38, United States 
Code, is amended by adding at the end the following new 
section:
``Sec. 6321. ABLE programs
``(a) In General.--The Secretary shall inform each veteran and 
eligible dependent who participates in or receives benefits or services 
through a program carried out under the laws administered by the 
Secretary about the existence of qualified ABLE programs and resources 
for people with disabilities, such as the ABLE National Resource 
Center, the National Association of State Treasurers, and ABLE Today, 
at the time such veteran or eligible dependent first participates in or 
receives such benefit or service through such program.
``(b) Definitions.--In this section:
``(1) Eligible dependent.--The term `eligible dependent' 
has the meaning given that term in section 6301(b) of this 
title.
``(2) Qualified able program.--The term `qualified ABLE 
program' has the meaning given that term in section 529A of the 
Internal Revenue Code of 1986.''.
(2) Clerical amendment.--The table of sections at the 
beginning of chapter 63 of such title is amended by adding at 
the end the following new item:

``6321. ABLE programs.''.
(c) Department of Housing and Urban Development.--
(1) Definition.--In this subsection, the term ``covered 
housing program'' means--
(A) the program for supportive housing for persons 
with disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 
8013); and
(B) the tenant-based assistance program under 
section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)).
(2) Requirement.--The Secretary of Housing and Urban 
Development shall ensure that when a family or an individual 
enrolls in a covered housing program or otherwise begins to 
occupy housing assisted by a covered housing program, the 
family or individual is informed about--
(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
(B) resources for people with disabilities, such as 
the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today.
(d) Chapter 85 of Title 41, United States Code.--Section 8503(d) of 
title 41, United States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and 
inserting ``; and''; and
(3) by adding at the end the following:
``(3) shall provide regulations providing that, when a 
qualified nonprofit agency that produces a product or services 
for the Federal Government under subsection (c) enrolls an 
individual in a program to produce the product or services, the 
agency shall inform the individual about--
``(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
``(B) resources for people with disabilities, such 
as the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today.''.
(e) State Medicaid and CHIP Agencies.--
(1) Medicaid.--Section 1902(a) of the Social Security Act 
(42 U.S.C. 1396a(a)) is amended--
(A) in paragraph (88), by striking ``; and'' and 
inserting a semicolon;
(B) in paragraph (89), by striking the period at 
the end and inserting ``; and''; and
(C) by inserting after paragraph (89) the following 
new paragraph:
``(90) provide that the State will inform any individual 
who enrolls for medical assistance under the State plan (or 
under a waiver of such plan) about the existence of qualified 
ABLE programs as defined in section 529A of the Internal 
Revenue Code of 1986, and resources for people with 
disabilities, such as the ABLE National Resources Center, the 
National Association of State Treasurers, and ABLE Today, when 
they first enroll for such assistance.''.
(2) CHIP.--Section 2107(e)(1) of the Social Security Act 
(42 U.S.C. 1397gg(e)(1)) is amended--
(A) by redesignating subparagraphs (I) through (W) 
as subparagraphs (J) through (X), respectively; and
(B) by inserting after subparagraph (H) the 
following new subparagraph:
``(I) Section 1902(a)(90) (relating to the 
provision of information about ABLE accounts to 
individuals when they first enroll for medical 
assistance).''.
(3) Effective date.--The amendments made by this subsection 
shall take effect on the date that is 180 days after the date 
of enactment of this Act.
(f) State TANF Agencies.--
(1) In general.--Section 408(a) of the Social Security Act 
(42 U.S.C. 608(a)) is amended by adding at the end the 
following new paragraph:
``(13) State requirement to provide information about able 
accounts.--Beginning 180 days after the date of enactment of 
the ABLE Awareness Act, a State to which a grant is made under 
section 403 shall provide information about the existence of 
qualified ABLE programs as defined in section 529A of the 
Internal Revenue Code of 1986, and resources for people with 
disabilities, such as the ABLE National Resources Center, the 
National Association of State Treasurers, and ABLE Today, to 
any family receiving or applying for assistance under such 
grant.''.
(2) State plan requirement.--Section 402(a)(1)(B) of the 
Social Security Act (42 U.S.C. 602(a)(1)(B)) is amended by 
adding at the end the following new clause:
``(vi) The document shall include 
information about how the State will provide 
information about qualified ABLE programs to 
individuals as required under section 
408(a)(13).''.
(g) Nutrition Assistance Programs.--Each State shall inform people 
with disabilities (as defined in section 3 of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12102)) about the existence of 
qualified ABLE programs (as defined in section 529A of the Internal 
Revenue Code of 1986), and resources for people with disabilities, such 
as the ABLE National Resource Center, the National Association of State 
Treasurers, and ABLE Today, on enrollment in any means-tested nutrition 
assistance program of the Department of Agriculture or the Department 
of Defense, including--
(1) the supplemental nutrition assistance program 
established under the Food and Nutrition Act of 2008 (7 U.S.C. 
2011 et seq.); and
(2) the special supplemental nutrition program for women, 
infants, and children established by section 17 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786).
(h) Rehabilitation Act of 1973.--Section 101(a) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is amended by adding at 
the end the following:
``(27) Information on able programs.--The State plan shall 
provide that, when an individual with a disability (as defined 
in section 7(20)(A)) enrolls in a vocational rehabilitation 
program, the designated State unit shall inform the person 
about--
``(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
``(B) resources for individuals with disabilities, 
such as the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today.''.
(i) Medicare.--Beginning 180 days after the date of enactment of 
this Act, the Secretary of Health and Human Services shall provide the 
information described in subsection (a)(3)(A) to any individual 
entitled to benefits under title XVIII of the Social Security Act (42 
U.S.C. 1395 et seq.) by reason of section 1811(2) of such Act (42 
U.S.C. 1395c(2)) at the time such individual becomes entitled to such 
benefits.
(j) Head Start Act.--
(1) Head start programs.--Section 642(b) of the Head Start 
Act (42 U.S.C. 9837(b)) is amended by adding at the end the 
following:
``(17) When a child is enrolled by the Head Start agency, 
inform the child's family about--
``(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
``(B) resources for individuals with disabilities, 
such as the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today.''.
(2) Early head start programs.--Section 645A(b) of the Head 
Start Act (42 U.S.C. 9840a(b)) is amended--
(A) by redesignating paragraph (12) as paragraph 
(13); and
(B) by inserting after paragraph (11) the 
following:
``(12) when a child is enrolled by the entity, inform the 
child's family about--
``(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
``(B) resources for individuals with disabilities, 
such as the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today; and''.
(k) Individuals With Disabilities Act.--
(1) In general.--Section 612(a) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1412(a)) is amended by 
adding at the end the following:
``(26) Information on able programs.--The parents of each 
child receiving special education and related services under 
this part or early intervening services under section 613(f) 
are provided with information regarding--
``(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
``(B) resources for individuals with disabilities, 
such as the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today.''.
(2) Infants and toddlers with disabilities program.--
Section 635(a) of the Individuals with Disabilities Education 
Act (20 U.S.C. 1435(a)) is amended by adding at the end the 
following:
``(17) Policies and procedures to ensure that the parents 
of each infant or toddler with a disability who receives early 
intervention services under this part are provided with 
information regarding--
``(A) the existence of qualified ABLE programs as 
defined in section 529A of the Internal Revenue Code of 
1986; and
``(B) resources for individuals with disabilities, 
such as the ABLE National Resource Center, the National 
Association of State Treasurers, and ABLE Today.''.

SEC. 9. ABLE AWARENESS GRANTS.

(a) In General.--The Secretary may award grants to eligible 
entities for the purposes of promoting the availability of ABLE 
programs and their benefits and encouraging the establishment of ABLE 
accounts for eligible individuals.
(b) Eligible Entity.--For purposes of this section, the term 
``eligible entity'' means--
(1) any State, or any agency or instrumentality thereof;
(2) an Indian tribal government or any subdivision thereof; 
or
(3) any consortium of entities described in paragraph (1) 
or (2).
(c) Awarding Grants.--
(1) Application.--An eligible entity desiring a grant under 
this section shall submit to the Secretary an application at 
such time, in such manner, and containing or accompanied by 
such information, as the Secretary may reasonably require.
(2) Data collection and reporting.--The Secretary may not 
award a grant under this section unless the eligible entity 
agrees to collect data on the number of ABLE accounts 
established as a result of activities carried out with the 
grant funds.
(d) Use of Funds.--
(1) In general.--An eligible entity receiving a grant under 
this section shall use the grant to increase awareness of ABLE 
accounts and to provide information on how to enroll in such 
accounts.
(2) Activities.--An eligible entity may use a grant under 
this section for--
(A) media buys;
(B) conferences, meetings, canvassing, and 
recruitment; and
(C) other activities to promote the availability 
and establishment of ABLE accounts.
(e) Other Terms.--For purposes of this section:
(1) ABLE program; able account; eligible individual.--The 
terms ``ABLE program'', ``ABLE account'', and ``eligible 
individual'' have the respective meaning given such terms under 
section 529A of the Internal Revenue Code of 1986.
(2) Secretary.--The term ``Secretary'' means the Secretary 
of the Treasury or the Secretary's delegate.
(3) State.--The term ``State'' includes any territory or 
possession of the United States.
(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2027 through 2031.
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