President Obama’s 2011 Budget and the Changing Policy Landscape for Asset-Building Opportunities

New America hosted a panel of experts to discuss the findings of the Assets Report 2010 and the changing policy landscape for asset-building promotion. Included on the panel were James Kvaal, Special Assistant to the President for Economic Policy in the White House National Economic Council; Carol Wayman, Legislative Director for CFED; and Reid Cramer, Director of the Asset Building Program at New America.

The panel highlighted recent legislative action regarding asset-building policy and discussed aspects of the President’s 2011 budget that promote wealth, savings and asset accumulation for Americans.

Mr. Cramer touched on the fact that current policies and programs involving asset-building rely heavily on the tax code and many of these programs are largely designed to benefit the middle and upper middle class. He also spoke to the new policies and proposals in the Administration’s FY11 budget and noted that many of these proposals are targeted toward low- and moderate-income families, moving the nation toward a more inclusive set of asset building supports. He noted that he would like to see policies promoting a wider range of savings products, commenting that Americans have a wide variety of savings needs and current policy is heavily focused on retirement savings.

Ms. Wayman stressed that the present is a “time like no other” for asset-building policy. She applauded the Administration’s proposals and said that these initiatives are finally being advanced on a large enough scale to make a difference in the lives of Americans. Ms. Wayman discussed two initiatives in particular—the Auto IRA and the expansion of the Saver’s Credit. She commented that together these proposals would improve access to savings vehicles for low- and moderate-income individuals and create greater adequacy within those vehicles.

Mr. Kvaal was able to provide insight into the priorities and policy focus of the Obama administration regarding asset-building programs and stated that the Administration views asset-building as an important part of its overall economic agenda. Mr. Kvaal highlighted ongoing work in several areas— including simplifying the federal financial aid application process for college students and raising the asset limits for all federal means-tested programs. These policies would provide greater access to federal financial assistance, both in terms of Pell grants for college students and for families trying to access federal social safety net programs such as SNAP and TANF.

The panel concluded by taking questions from the audience. The discussion revolved around issues such as how best to balance flexibility and security in the Auto IRA, financial literacy for low-income Americans, and the use of the Saver’s Credit with college savings accounts.

Participants

Featured Speakers
James Kvaal
Special Assistant to the President for Economic Policy
National Economic Council

Carol Wayman
Federal Policy Director
CFED

Reid Cramer
Director, Asset Building Program
New America Foundation

Moderator
Justin King
Federal Policy Liaison, Asset Building Program
New America Foundation