Central Vermont Program That Helps Low-Income Vermonters Save For Education Or New Home Wins Federal Grant

September 23, 1999

WASHINGTON (Sept. 23) -- An enterprising program in central Vermont that helps low-income Vermonters use specialized savings accounts to buy a new home, obtain an education or start up a small business, has won a new $71,825 federal grant to expand the program, according to Sens. Patrick Leahy and James Jeffords.

The Central Vermont Community Action Council (CVCAC), a non-profit organization in Berlin, has won approval for their grant application from the U.S. Department of Health and Human Services. Both Vermont senators had urged the department to approve the grant request.

The council will match the federal grant with their own contribution -- partly donated by local private institutions such as a bank -- to expand the so-called "Individual Development Accounts." These accounts are specialized savings accounts, similar to an individual retirement account. They can be used for a number of initiatives designed to help build the assets of low- income Vermonters, who often have a difficult time amassing enough savings to purchase things like a new house, obtain an education or develop a small business. Participants in the program also receive economic literacy training that teaches them the basics of money management, such as cleaning up their credit history and creating a budget and savings schedule.

"I'm thrilled that the CVCAC is a recipient of an Assets for Independence grant," said Jeffords. "I worked hard to get this legislation passed through the Health and Education Committee, and it's nice to see that low-income families in Vermont will reap the benefits."

"This is an innovative way to help low-income Vermonters get ahead," said Leahy. "Too often, people have such a difficult time escaping from a mountain of bills that they can't afford to save enough money to pay for an education or a new home. This program and these funds will help Vermonters permanently lift themselves out of poverty."

"This grant will primarily add another dollar to match the savings of low income participants in our Tangible Assets Project," said Hal Cohen, Executive Director of Central Vermont Community Action. "That means that these families will be that much closer to their dreams of home ownership, post-secondary education, and owning a business -- futures that can help move people out of poverty, permanently. We appreciate Senator Jeffords' efforts in seeing that the federal legislation that created this program to promote IDAs across the country. He was crucial to making it happen and in supporting this real alternative for helping low-income families move out of poverty."

The new federal funds -- along with a matching amount from CVCAC -- will allow the council to enlarge existing individual development accounts for 65 recently enrolled participants.

Phone Number For Hal Cohen: 479-1053