This study examines the experience of states in developing and operating special-purpose savings account programs for low-income households. The Food and Nutrition Service (FNS) is interested in the use of special-purpose accounts for the low-income population--especially for households receiving food stamps--as a means of promoting self-sufficiency . These accounts enable low-income persons to accumulate savings for specified purposes such as education, home purchase, home improvement, and business start-up. In many program initiatives, the account holder qualifies for matching funds to enable a more rapid accumulation of savings, as long as the account balances are used for the specified purposes. Such matched accounts are typically called a individual development accounts or IDAs.

This report is the first to present information on a little-known segment of the Food Stamp population that has been profoundly affected by welfare reform—unemployed, childless, 18-50 year old able-bodied adults. As government agencies find themselves having to learn quickly about those affected by the new rules of public assistance , the need to gather timely and accurate information has never been greater.

The report presents the results of a survey conducted with every state during November and December 1997 to gather detailed information on state options taken in six main areas, with particular focus on time limits and work requirements for able-bodied adults without dependents (ABAWDs) and on food stamp sanctions.