HB1432 expands Illinois’ ABLE account program, which allows individuals with disabilities and their families to save money in tax-advantaged accounts for qualified disability expenses without jeopardizing certain public benefits. The bill updates the State Treasurer Act’s ABLE program provisions, including definitions, administration, investment rules, privacy protections, and distribution rules, and it authorizes the Treasurer to continue operating the program through third-party administrators and interstate agreements.
A major new feature of the bill is a state matching contribution: subject to appropriation, the State Treasurer may deposit a $50 match into an ABLE account opened on or after January 1, 2026 for an Illinois resident, with authority to increase that amount by rule. The bill also creates the Illinois ABLE Matching Contribution Fund in the State treasury to hold appropriated money, gifts, grants, interest, and other assets used for the match program. The bill further allows the ABLE program to be referred to as the Senator Scott Bennett ABLE Program.
Impact
The bill amends the State Treasurer Act and the State Finance Act. It adds a new special fund, the Illinois ABLE Matching Contribution Fund, and authorizes the Treasurer to use appropriated money and other deposits for matching contributions to eligible ABLE accounts. It also reinforces existing statutory protections for ABLE assets, including tax exemption, creditor protection, confidentiality, and disregard of ABLE balances for many means-tested benefit determinations, while preserving the program’s compliance with Section 529A of the Internal Revenue Code.
Sentiment
The available voting history shows strong support: the bill passed Third Reading in the House 102-0 on April 7, 2025. No committee transcripts were provided, so there is no recorded floor or committee debate in the supplied materials. Overall, the bill appears to have been viewed favorably as a disability-savings measure with bipartisan or near-unanimous support.
Contention
No specific opposition is reflected in the provided record, and the unanimous House vote suggests little visible controversy. The main policy questions implied by the text are fiscal rather than ideological: the matching contribution is only available subject to appropriation, the Treasurer may reduce or forgo matches if funds are insufficient, and the program depends on administrative costs, investment management, and rulemaking by the Treasurer. Any potential concern would likely center on state funding commitments and implementation details rather than the underlying purpose of supporting people with disabilities.
Individual income tax: deductions; deductions for contributions to Trump Accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds sec. 51i.