David Camp, NOSSCR Senior Policy Advisor

On May 12, 2026 Senators Jerry Moran (R-KS), Chris Van Hollen (D-MD), Tom Tillis (R-NC), and Amy Klobuchar (D-MN) introduced the ABLE Tomorrow Act (S. 4498).

ABLE accounts are tax-free savings accounts used to cover qualified disability expenses. This legislation would make permanent the temporary ABLE account statutory provisions, while increasing ABLE account contribution flexibility. The bill prohibits states from seizing remaining ABLE funds for Medicaid reimbursement after a beneficiary’s death. It allows for one-time lump-sum contributions from trusts or life insurance distributions, and it enables employers to contribute directly to employee ABLE accounts in lieu of retirement plans. Additionally, it mandates that federal agencies educate eligible individuals about these tax-advantaged accounts to increase program utilization and long-term stability.

For more information about ABLE accounts, review Social Security’s summary and this from the National Disability Institute. The Arc recently summarized the 2026 updates to ABLE’s provisions, including expansion of the age rule (an able account may now be opened if disability began before age 46, an increase from the original threshold age of 26) and the increased annual contribution limit of $20,000.

S. 4498 has been referred to the Senate Committee on Finance.

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