The ABLE Tomorrow Act makes permanent and expands a tax-advantaged savings program for people with disabilities. ABLE accounts let people with disabilities save money for disability-related expenses without losing eligibility for crucial benefits like Medicaid or Supplemental Security Income. Right now, hundreds of thousands of people use these accounts, and that number is expected to nearly double soon.

The bill makes several key improvements. It removes a rule that allowed states to take money from ABLE accounts after someone dies to recover Medicaid costs. It allows people to contribute more money to their accounts through special lump-sum payments from life insurance, trusts, or college savings plans. It lets workers with disabilities redirect employer retirement contributions into ABLE accounts instead, so they don't have to choose between saving for retirement and managing disability expenses. It also gives people a two-month grace period after being notified their benefits will be suspended, giving them time to adjust their account balance.

Perhaps most importantly, the bill requires multiple government agencies—Social Security, Veterans Affairs, Medicaid, housing programs, schools, and others—to inform people with disabilities about ABLE accounts when they first interact with these programs. The government will also award grants to states and organizations to spread awareness about ABLE accounts and help people open them. This is designed to make sure more eligible people actually know about and use these accounts.