Bill Sponsors
LaMountain, Felag, Burke, Tikoian, Ciccone, McKenney, Bissaillon, and Urso
Committee
Senate Finance
Summary
Select
This legislation modifies eligibility rules for two specific state benefit programs. First, it amends the General Public Assistance (GPA) program to allow applicants to own Individual Retirement Accounts (IRAs) without being disqualified from receiving aid; previously, these assets counted against eligibility. Second, it amends the rules regarding ABLE accounts (tax-advantaged savings accounts for individuals with disabilities). Specifically, it removes the state's ability to seize funds from an ABLE account upon the death of the beneficiary to repay Medicaid costs, allowing those funds to remain with the beneficiary's estate or heirs instead.
Sponsor
Analysis
Pros for Progressives
- Protects the financial security of low-income individuals by allowing them to access temporary assistance without being forced to liquidate their long-term retirement savings, preventing a cycle of poverty in old age.
- Strengthens the financial autonomy of the disability community by ensuring that assets in ABLE accounts can be passed down to families rather than being seized by the state, promoting generational wealth.
- Expands the social safety net by removing restrictive asset limits that previously barred struggling residents from receiving General Public Assistance.
Cons for Progressives
- Eliminating the state's ability to recover Medicaid costs from ABLE accounts could theoretically reduce the total pool of funds available for other public health services, though the impact is likely minimal.
- By exempting IRAs, the bill might allow individuals with significant (though illiquid) wealth to access poverty-focused resources, potentially diverting attention from the most destitute.
- The legislation focuses on asset exemptions but does not address the potentially inadequate benefit amounts provided by General Public Assistance to meet current living standards.
Pros for Conservatives
- Strengthens private property rights by preventing the government from seizing private savings in ABLE accounts upon the death of a beneficiary.
- Encourages personal responsibility and saving by ensuring that individuals are not punished for having retirement accounts when they face a temporary medical hardship.
- Supports the family unit by allowing assets to be inherited by heirs rather than being absorbed by the state bureaucracy through estate recovery.
Cons for Conservatives
- Expands the welfare state by making more people eligible for taxpayer-funded General Public Assistance who previously would have been disqualified due to their assets.
- Prevents the state from recouping taxpayer money spent on healthcare services, potentially shifting the financial burden to current taxpayers rather than using the beneficiary's remaining assets.
- Undermines the principle that individuals should exhaust their own financial resources, including retirement savings, before relying on government handouts.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- General Public Assistance applicants
- Individuals with disabilities
- ABLE account holders
- Department of Human Services
- Taxpayers
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
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Public Services
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Regulatory
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Clarity of Bill Language
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Environmental Impact
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/16/2026 Introduced, referred to Senate Finance
Bill Text
SECTION 1. Section 40-6-3.1 of the General Laws in Chapter 40-6 entitled "Public Assistance Act" is hereby amended to read as follows:
40-6-3.1. Eligibility for general public assistance.
(a) The state, acting by and through the department, shall provide assistance (in the form specified in § 40-6-3.2) to residents of the state found by the department, in accordance with this chapter and rules and regulations of the department, to be eligible for general public assistance; provided further, that benefits under this program shall be provided only to residents who are citizens of the United States or aliens lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law, and benefits shall not be provided to illegal or undocumented aliens.
(b) Individuals eligible for GPA.(1) General public assistance shall be provided to the following individuals and families provided all other eligibility requirements of this chapter are met: Individuals age eighteen (18) or older, provided that they do not have a dependent child who is living in his or her home, and provided that they are determined by the department, in accordance with this chapter and departmental regulations, to be suffering from an illness, injury, or medical condition as determined by physical examination by a licensed physician, that is reasonably expected to last for a period of at least thirty (30) days from the date the application for general public assistance is filed with the department and that precludes the individual from working. The illness, injury, or medical condition may be based on a primary diagnosis of alcoholism or substance abuse. The total physical or mental incapacity shall be verified by a medical practitioner and/or a qualified substance abuse counselor designated by the department, within forty-five (45) days of the date the individual is found by the department to be totally incapacitated. If total physical or mental incapacity cannot be reasonably verified, then the individual shall not be eligible for general public assistance under this subsection.
(2) The department shall provide an application for medical assistance (Medicaid) benefits to each applicant for general public assistance and shall use a uniform medical form for both programs to secure information from the applicant’s treating physician. A decision on the application for general public assistance shall be made within thirty (30) days of receipt of a completed application.
(3) Individuals found eligible on the basis of illness, injury, or medical condition under subsection (b) shall be eligible for assistance only in the forms specified in § 40-6-3.2(a)(2) and (a)(3), and only for an initial period of up to six (6) months, renewable for a period of up to an additional six (6) months. In order to receive assistance for a period greater than twelve (12) months, individuals must reapply for general public assistance.
(c) Resources. Ownership of real or personal property shall disqualify individuals from receiving general public assistance; provided, however, that the following property or resources owned by the individuals shall be exempted:
(1) A home occupied by the individuals;
(2) One motor vehicle having an equity value not exceeding four thousand six hundred fifty dollars ($4,650) or a vehicle necessary to transport a family member with a disability, where the vehicle is specially equipped to meet the specific needs of the person with a disability or if the vehicle is a special type of vehicle that makes it possible to transport the person with the disability;
(3) Cash or liquid assets not exceeding four hundred dollars ($400);
(4) Such tools of the trade not to exceed an aggregate value of one thousand dollars ($1,000) and household furnishings and effects as the director shall determine by regulation; and
(5) Individual retirement accounts.
(d) Income. (1)(i) Income shall not disqualify an individual from receiving general public assistance provided that the income, as defined and determined by the department, is within the income limitations established by the regulations of the department.
(ii) Pursuant to the purposes set forth in § 40-6-3 and notwithstanding the provisions of § 40-6-3.3 [Repealed], individuals found ineligible for cash assistance under chapter 5.1 of this title due to provisions of the chapter regarding alien sponsors, the deeming of alien sponsor income or the deeming of stepparent income, shall not be eligible for general public assistance. LC004006 - Page 2 of 5
(2) Notwithstanding the provisions of § 40-6-3.3 [Repealed], the receipt of lump-sum income shall disqualify an individual from receiving general public assistance.
(3) The department shall promulgate rules and regulations regarding the treatment of lump- sum income.
(e) Postsecondary education. (1) An individual age eighteen (18) or older, attending a school, college, or university as a full-time student or attending a full-time program of vocational or technical training, all beyond the level of secondary education, shall not be eligible for general public assistance under this chapter, excepting, however, those individuals active as students with the department’s vocational rehabilitation programs who have been certified as unemployable by the department.
(2) Notwithstanding the foregoing prohibition, an individual, age eighteen (18) or older, pursuing a course of study on a part-time basis beyond the level of secondary education, may be eligible for general public assistance, provided the student remains available for and is actively seeking employment, and provided that the individual meets all other eligibility requirements for general public assistance pursuant to this chapter.
(f) Cooperation in applying for SSI and medical assistance. All applicants and recipients of general public assistance shall, within thirty (30) days of application for general public assistance or notice from the department, be required to apply for and cooperate in the determination for benefits under the federal Supplemental Security Income (SSI) program and/or medical assistance, as provided pursuant to Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., provided the applicant or recipient is determined by the department to be potentially eligible for benefits.
(g) Report of income or resources by recipients. If, at any time during the receipt of general public assistance, the recipient thereof becomes possessed of income or resources in excess of the amount previously reported by him or her, it shall be his or her duty and a condition of eligibility to notify the department of this fact immediately on the receipt or possession of additional income or resources.
SECTION 2. Section 42-7.2-20.8 of the General Laws in Chapter 42-7.2 entitled "Office of Health and Human Services" is hereby amended to read as follows:
42-7.2-20.8. Creditors.
Notwithstanding any provision of the general or public laws to the contrary, money in the ABLE program shall be exempt from creditor process and shall not be liable to attachment, garnishment, or other process, nor shall it be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of any contributor or beneficiary; provided, however, that the state of residency of the designated beneficiary of an ABLE account LC004006 - Page 3 of 5 shall be a creditor of such account in the event of the death of the designated beneficiary.
SECTION 3. This act shall take effect upon passage.
40-6-3.1. Eligibility for general public assistance.
(a) The state, acting by and through the department, shall provide assistance (in the form specified in § 40-6-3.2) to residents of the state found by the department, in accordance with this chapter and rules and regulations of the department, to be eligible for general public assistance; provided further, that benefits under this program shall be provided only to residents who are citizens of the United States or aliens lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law, and benefits shall not be provided to illegal or undocumented aliens.
(b) Individuals eligible for GPA.(1) General public assistance shall be provided to the following individuals and families provided all other eligibility requirements of this chapter are met: Individuals age eighteen (18) or older, provided that they do not have a dependent child who is living in his or her home, and provided that they are determined by the department, in accordance with this chapter and departmental regulations, to be suffering from an illness, injury, or medical condition as determined by physical examination by a licensed physician, that is reasonably expected to last for a period of at least thirty (30) days from the date the application for general public assistance is filed with the department and that precludes the individual from working. The illness, injury, or medical condition may be based on a primary diagnosis of alcoholism or substance abuse. The total physical or mental incapacity shall be verified by a medical practitioner and/or a qualified substance abuse counselor designated by the department, within forty-five (45) days of the date the individual is found by the department to be totally incapacitated. If total physical or mental incapacity cannot be reasonably verified, then the individual shall not be eligible for general public assistance under this subsection.
(2) The department shall provide an application for medical assistance (Medicaid) benefits to each applicant for general public assistance and shall use a uniform medical form for both programs to secure information from the applicant’s treating physician. A decision on the application for general public assistance shall be made within thirty (30) days of receipt of a completed application.
(3) Individuals found eligible on the basis of illness, injury, or medical condition under subsection (b) shall be eligible for assistance only in the forms specified in § 40-6-3.2(a)(2) and (a)(3), and only for an initial period of up to six (6) months, renewable for a period of up to an additional six (6) months. In order to receive assistance for a period greater than twelve (12) months, individuals must reapply for general public assistance.
(c) Resources. Ownership of real or personal property shall disqualify individuals from receiving general public assistance; provided, however, that the following property or resources owned by the individuals shall be exempted:
(1) A home occupied by the individuals;
(2) One motor vehicle having an equity value not exceeding four thousand six hundred fifty dollars ($4,650) or a vehicle necessary to transport a family member with a disability, where the vehicle is specially equipped to meet the specific needs of the person with a disability or if the vehicle is a special type of vehicle that makes it possible to transport the person with the disability;
(3) Cash or liquid assets not exceeding four hundred dollars ($400);
(4) Such tools of the trade not to exceed an aggregate value of one thousand dollars ($1,000) and household furnishings and effects as the director shall determine by regulation; and
(5) Individual retirement accounts.
(d) Income. (1)(i) Income shall not disqualify an individual from receiving general public assistance provided that the income, as defined and determined by the department, is within the income limitations established by the regulations of the department.
(ii) Pursuant to the purposes set forth in § 40-6-3 and notwithstanding the provisions of § 40-6-3.3 [Repealed], individuals found ineligible for cash assistance under chapter 5.1 of this title due to provisions of the chapter regarding alien sponsors, the deeming of alien sponsor income or the deeming of stepparent income, shall not be eligible for general public assistance. LC004006 - Page 2 of 5
(2) Notwithstanding the provisions of § 40-6-3.3 [Repealed], the receipt of lump-sum income shall disqualify an individual from receiving general public assistance.
(3) The department shall promulgate rules and regulations regarding the treatment of lump- sum income.
(e) Postsecondary education. (1) An individual age eighteen (18) or older, attending a school, college, or university as a full-time student or attending a full-time program of vocational or technical training, all beyond the level of secondary education, shall not be eligible for general public assistance under this chapter, excepting, however, those individuals active as students with the department’s vocational rehabilitation programs who have been certified as unemployable by the department.
(2) Notwithstanding the foregoing prohibition, an individual, age eighteen (18) or older, pursuing a course of study on a part-time basis beyond the level of secondary education, may be eligible for general public assistance, provided the student remains available for and is actively seeking employment, and provided that the individual meets all other eligibility requirements for general public assistance pursuant to this chapter.
(f) Cooperation in applying for SSI and medical assistance. All applicants and recipients of general public assistance shall, within thirty (30) days of application for general public assistance or notice from the department, be required to apply for and cooperate in the determination for benefits under the federal Supplemental Security Income (SSI) program and/or medical assistance, as provided pursuant to Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq., provided the applicant or recipient is determined by the department to be potentially eligible for benefits.
(g) Report of income or resources by recipients. If, at any time during the receipt of general public assistance, the recipient thereof becomes possessed of income or resources in excess of the amount previously reported by him or her, it shall be his or her duty and a condition of eligibility to notify the department of this fact immediately on the receipt or possession of additional income or resources.
SECTION 2. Section 42-7.2-20.8 of the General Laws in Chapter 42-7.2 entitled "Office of Health and Human Services" is hereby amended to read as follows:
42-7.2-20.8. Creditors.
Notwithstanding any provision of the general or public laws to the contrary, money in the ABLE program shall be exempt from creditor process and shall not be liable to attachment, garnishment, or other process, nor shall it be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of any contributor or beneficiary
SECTION 3. This act shall take effect upon passage.