Cost-of-Living Fairness Act
Summary
The "Cost-of-Living Fairness Act" aims to modify how federal benefits eligibility is determined. Specifically, it mandates that payments for certain insurance policy premiums be deducted from an individual's income and resources when assessing eligibility for federal or federally-funded state/local programs. The bill defines 'covered insurance policy' to include vehicle, homeowner/renter's, and flood insurance.
Expected Effects
The primary effect of this bill would be to potentially expand eligibility for various federal assistance programs. By reducing countable income, more individuals and households might qualify for benefits they were previously ineligible for. This could lead to increased enrollment and utilization of these programs.
Potential Benefits
- Increased access to federal assistance programs for low-income individuals and families.
- Reduced financial burden on individuals by recognizing insurance costs as a necessary expense.
- Potential for improved financial stability for vulnerable populations.
- Simplification of the eligibility determination process by standardizing income deductions.
- May incentivize individuals to obtain necessary insurance coverage.
Most Benefited Areas:
Potential Disadvantages
- Potential strain on federal and state budgets due to increased program enrollment.
- Possible increase in administrative costs associated with processing additional applications.
- Risk of fraud or abuse related to claiming insurance premium deductions.
- Complexity in verifying insurance coverage and premium payments.
- May disproportionately benefit individuals who already have insurance, potentially widening the gap between insured and uninsured.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the "general Welfare" clause of the Constitution's preamble, as it seeks to provide financial relief to individuals by considering insurance costs in determining eligibility for federal assistance programs. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under the power of Congress to provide for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).