The "Cost-of-Living Fairness Act" proposes a change to how eligibility for Federal assistance programs is determined. It mandates that payments made by an individual for specific types of insurance policies must be deducted from their income and resources when calculating eligibility for Federal benefits or assistance, including State or local programs funded federally. This deduction aims to provide a more accurate reflection of an individual's disposable income, potentially making more people eligible for aid or increasing the amount of assistance they receive. The covered insurance policies include passenger motor vehicle insurance, homeowner's or renter's insurance, and flood insurance for a principal residence, ensuring that essential living costs are factored into benefit determinations.