Temporary Assistance for Needy Families (TANF) was created in 1996 through the Personal Responsibility and Work Opportunity Reconciliation Act. TANF introduced strict federal asset limits for the first time, and it allowed states to set their own limits, which many kept at $1,000–$2,000 for decades. These limits restricted the amount of money or property a family could have while still qualifying for cash assistance, making it harder for low-income families to save or build financial stability.

Other programs also included asset limits that affected access to benefits. SNAP (Supplemental Nutrition Assistance Program), which started in 1964, added asset limits in the 1970s and tightened them in the 1980s and 1990s, though states could later adjust limits through “Broad-Based Categorical Eligibility.” Public Housing and Housing Choice Voucher programs, originating from the U.S. Housing Act of 1937, also applied stricter asset limitationa from the 1970s–1990s, with local housing authorities allowed to set their own thresholds. These rules limited the ability of low-income families to save or build wealth while still accessing support programs.