Assets for Independence Act

Amends the Community Services Block Grant Act to add a Part B (Assets for Independence), which may be cited as the Assets for Independence Act.

Provides for the establishment of individual development account (IDA) 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 in an IDA; (2) the extent to which an asset-based policy that promotes saving for education, home ownership, 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 stabilizes and improves families and the community in which they live.

(Sec. 1) Limits the use of IDA distributions to specified postsecondary educational, first-home purchase, and business capitalization expenses, as well as transfers to IDAs of family members.

Allows not-for-profit organizations, State or local government agencies, and tribal governments to apply to the Secretary of Health and Human Services for grants for such demonstration projects. Directs the Secretary to publicly announce funding for such projects and make applications widely available to qualified entities. Sets forth criteria for application approval, including project sufficiency, administrative ability, ability to assist participants, commitment of non-Federal funds, and adequacy of information for evaluation.

Directs the Secretary to make annual grants for five project years for such demonstration projects to entities with approved applications. Limits the amount of such a grant to any qualified entity in a single year to the lesser of $1 million or an amount equal to the amount of non-Federal matching funds.

Requires each qualified not-for-profit organization receiving a grant to establish a reserve fund for deposit of private and public funds provided for the demonstration project, as well as proceeds from investments.

Makes an individual eligible for assistance under a demonstration project if the individual is a member of a household that: (1) is eligible for assistance under part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act; or (2) meets certain income and net worth tests.

Allows IDAs, to which qualified individuals may contribute, to be matched from grant funds by the qualified entity conducting the demonstration project, according to a certain formula, in an amount up to $2,000 per individual ($4,000 per household).

Provides for local control over such demonstration projects.

Directs the Secretary to terminate a demonstration project upon determination of noncompliance with requirements and failure to implement corrective recommendations.

Prohibits considering funds in the IDA of a demonstration project participant as income for purposes of any Federal or federally-assisted program based on need.

Authorizes appropriations.