112 STAT. 2760 PUBLIC LAW 105-285—OCT. 27, 1998 an adequate education, and starting a business, is increasing. Further, the household savings rate of the United States lags far behind other industrial nations, presenting a barrier to economic growth. (3) In the current tight fiscal environment, the United States should invest existing resources in high-yield initiatives. There is reason to believe mat the financial returns, including increased income, tax revenue, and decreased welfare cash assistance, resulting from individual development accounts will far exceed the cost of investment in those accounts. (4) Traditional public assistance programs concentrating on income and consumption have rarely been successful in promoting and supporting the transition to increased economic self-sufficiency. Income-based domestic policy should be complemented with asset-based policy because, while income-based policies ensure that consumption needs (including food, child care, rent, clothing, and health care) are met, asset-based policies provide the means to achieve greater independence and economic well-being. SEC. 403. PURPOSES. The purposes of this title are to provide for the establishment of demonstration projects designed to determine— (1) the social, civic, psychological, and economic effects of providing to individuals and families with limited means an incentive to accumulate assets by saving a portion of their earned income; (2) the extent to which an asset-based policy that promotes saving for postsecondary education, homeownership, and microenterprise development may be used to enable individuals and families with limited means to increase their economic self- sufficiency; and (3) the extent to which an asset-based policy stabihzes and improves families and the community in which the families Uve. SEC. 404. DEFINITIONS. In this title: (1) APPLICABLE PERIOD.— The term "applicable period" means, with respect to amounts to be paid from a grant made for a project year, the calendar year immediately preceding the calenaar year in which the grant is made. (2) ELIGIBLE INDIVIDUAL.— The term "eligible individual" means ein individual who is selected to participate in a demonstration project by a qualified entity under section 409. (3) EMERGENCY WITHDRAWAL. — The term "emergency withdrawal" means a withdrawal by an eligible individual that— (A) is a withdrawal of only those funds, or a portion of those funds, deposited by the individual in the individual development account of the individual; (B) is permitted by a qualified entity on a case-by- case basis; and (C) is made for— (i) expenses for medical care or necessary to obtain medical CEire, for the individual or a spouse or dependent of the individual described in paragraph (8)(D); (ii) payments necessary to prevent the eviction of the individual from the residence of the individual,
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