“Beyond removing disincentives for the poor to save, states have increasingly created active incentives through Individual Development Accounts (IDAs). Thirty-nine states have had a state-supported IDA program at some point and eighteen states funded their IDA programs in 2007. 540 community-based organizations help to run these programs across the country. They are funded either through general funds, TANF, Community Development Block Grants, tax credits or housing trust funds. IDAs are savings accounts matched with state govenrment contributions that are targeted to low-income persons. Withdrawals are typically restricted to the purchase of assets, such as buying a home, pursuing postsecondary education and training, and starting a small business. In some cases, other uses such as the purchase of a car, a computer or other work-related investments are also permitted. Most IDA programs match contributions by low-income families through a blend of public and private funding”  (Progressive States Network, 2008).

Progressive States Network. (2008). Individual development accounts. Retrieved from