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OLR Bill Analysis
sSB 1476
AN ACT CONCERNING THE ABLE ACT.
SUMMARY
This bill makes various changes to Connecticut’s Achieving a Better
Life (ABLE) program (see BACKGROUND). Specifically, the bill:
1. changes who is eligible to open an ABLE account to align with
federal law;
2. allows the state treasurer, who administers the ABLE program,
to pay fees associated with administering individual ABLE
accounts; and
3. disregards, to the extent federal law allows, ABLE accounts in all
means-tested public assistance programs administered by the
state or its political subdivisions, rather than only specific
programs listed in current law.
The bill also updates references to federal ABLE statutes and
regulations in Connecticut’s statutes to ensure (1) Connecticut’s
definitions related to program participants and eligibility align with
federal criteria and (2) any future federal changes are automatically
incorporated into state statute. It also makes minor, technical, and
conforming changes.
EFFECTIVE DATE: Upon passage
EXPANDED ELIGIBILITY
Under current state and federal law, a person who receives Social
Security disability benefits and has certified his or her disability in the
given tax year is eligible to participate in the ABLE program so long as
the person’s disability occurred before age 26. Effective January 1, 2026,
federal law is scheduled to expand ABLE program eligibility to people 2025SB-01476-R000385-BA.DOCX
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whose disability occurred before age 46. The bill aligns Connecticut’s
statutory definition of “eligible individual” with the federal definition,
effectively expanding eligibility for the state’s program starting in 2026
and automatically incorporating any future eligibility changes enacted
under federal law in the state’s program.
AUTHORIZED INDIVIDUALS
The bill replaces references to “depositors” with references to
“authorized individuals,” to conform with federal law. Under current
state law, a depositor is someone making a deposit into an ABLE
account pursuant to a participation agreement (i.e. the agreement
between the trust and depositor to benefit a designated beneficiary). The
bill instead references “authorized individuals,” defined as the people
or entities authorized under (1) federal law to establish an ABLE account
on an eligible individual’s behalf and (2) the state’s qualified ABLE
program to establish an ABLE account or act on its designated
beneficiary’s behalf.
Under federal regulations and current state law, an ABLE account
may be established by the eligible individual or a person he or she
chooses. If the eligible individual is unable to establish his or her own
account, their agent, under a power of attorney, or their conservator or
legal guardian, spouse, parent, sibling, grandparent, or representative
payee appointed for them by the Social Security Administration, in that
order, can establish the account (26 CFR 1.529A-2(c)).
INCOME DISREGARDS
To the extent allowed by federal law, the bill requires any funds
invested in, contributed to, or distributed from an ABLE account to be
disregarded when determining an individual’s eligibility for assistance
under any means-tested public assistance program administered by the
state or its political subdivisions. Under current law, these funds are
disregarded only for the following federally funded assistance or benefit
programs:
1. the Temporary Family Assistance program, 2025SB-01476-R000385-BA.DOCX
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2. programs funded under the federal Low Income Home Energy
Assistance Program,
3. the state-administered general assistance program (SAGA),
4. the optional State Supplement Program, to the extent the federal
Supplemental Security Income program allows, and
5. any other federally funded assistance or benefit program,
including the state’s medical assistance programs (i.e. HUSKY
and Medicaid).
BACKGROUND
ABLE Program
The federal ABLE Act allows states to establish their own ABLE
programs to (1) encourage individuals and families to save money to
support individuals with disabilities to maintain health, independence,
and quality of life and (2) provide secure funding for disability-related
expenses on behalf of designated beneficiaries with disabilities that will
supplement, but not replace, benefits provided through private
insurance, Medicaid, and other sources. Eligible people living with a
disability or blindness, or their families, may establish and contribute to
accounts. Funds in the accounts may be spent on qualified disability
expenses, including education, housing, and transportation.
COMMITTEE ACTION
Human Services Committee
Joint Favorable
Yea 22 Nay 0 (03/13/2025)