Tlaib, DeLauro Introduce the Cost-of-Living Fairness Act

DETROIT – Today, Congresswoman Rashida Tlaib (MI-12) and Congresswoman Rosa DeLauro (CT-03) introduced the Cost-of-Living Fairness Act to support families by including common housing and auto insurance expenses in the cost-of-living formula used to determine eligibility for federal assistance programs. Including these costs in the cost-of-living formula will help many more residents qualify for federal assistance that can help them thrive.

“While rent, utilities, and other living expenses are deducted from a household’s income to enable more families to qualify for federal assistance, it’s outrageous that housing and auto insurance are currently not considered as an expense. This legislation is needed to alleviate the financial strain on families working hard to make ends meet,” said Congresswoman Tlaib. “12th District residents still pay some of the highest auto insurance rates in the nation. This is about economic justice and ensuring that working families receive the support they need from the federal government.”

“The Cost-of-Living Fairness Act recognizes the reality that Americans are struggling with high costs,” said Congresswoman DeLauro. “In almost every state, auto insurance is mandatory, and housing-related insurance is a necessity. These costs add up to thousands of dollars a year, yet they are left out when calculating the federal cost-of-living formula. That can leave too many working families unfairly excluded from federal assistance programs. By factoring in these expenses, this legislation ensures families’ real cost of living is factored in their eligibility for assistance programs.”

In 49 of 50 U.S. states, drivers are required by law to have auto insurance. While rent, utilities, and other living expenses are deducted from a household’s income to enable more families to qualify for assistance, common housing and auto insurance payments are not currently considered an expense.

The Cost-of-Living Fairness Act would more accurately reflect families’ monthly expenses and result in fairer treatment when applying for federal assistance programs. Average auto insurance premiums are $3,000 or $4,000 in some states. Together, annual homeowner’s and flood insurance costs average roughly $3,000 nationwide, and are twice as expensive in some areas. Across our country, these prices are increasing. Families deserve to have these expenses considered when applying for assistance. Enacting this legislation would be another important step in addressing poverty and ensuring that families receive the support they truly need.

This legislation is cosponsored by Reps. Nanette Barragán (CA-44), Veronica Escobar (TX-16), Eleanor Holmes Norton (DC), Jonathan Jackson (IL-01), LaMonica McIver (NJ-10), Delia Ramirez (IL-03), Kristen McDonald Rivet (MI-08), Shri Thanedar (MI-13), and Bonnie Watson Coleman (NJ-12).

This legislation is endorsed by the People’s Policy Project, Wayne Metro Community Action Agency, and We the People Action Fund.

A copy of the legislation can be found here.

A copy of a one-pager can be found here. 

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