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What's new with SEED?California State Senators Darrell Steinberg (D-Sacramento) and Robert Dutton (R-Rancho Cucamonga) introduced a bill (SB 752) on February 23 to establish Kids Investment and Development Savings (KIDS) Accounts for every child born in the state. The accounts would feature a $500 initial deposit by the state, beginning in 2008. Funds from the accounts would be available for withdrawal upon the child’s 18th birthday, and could be used for post-secondary education and training, first home purchase, or retirement. SEED national partner New America Foundation crafted the bill. SEED state policy partner APIC has been working to build support for the legislation across California. Click here to read SB 752. Since the bill’s introduction, conservative and anti-immigrant networks have been activated to voice their opposition to the bill. The folks in California have asked us to encourage you to express your support for the bill and for CSAs by taking any of the following actions – whether or not you are in California: *** Both the Illinois Senate and House introduced bills (SB 0388 and HB 1662) in February to create the Illinois Children’s Savings Accounts Act. The bills would establish a task force to hold hearings, make recommendations, and issue a report on how to structure and implement a statewide, universal CSA program in Illinois. The Illinois Asset Building Group, a SEED state policy partner, has played an instrumental role in drafting the legislation and generating support for the creation of a task force. Click here to read the Senate version of the bill. *** On January 25, Los Angeles Mayor Antonio Villaraigosa announced the release of “Repairing the Economic Ladder: A Transformative Investment Strategy to Reduce Poverty and Expand America's Middle Class,” which details the findings and recommendations of the U.S. Conference of Mayors Task Force on Poverty, Work and Opportunity. Villaraigosa chairs the task force. The task force recommends that the federal government establish Lifetime Learning Savings Accounts for every child born in the United States. According to this recommendation, the accounts would feature a maximum initial deposit of $500 at birth and progressive matches of up to $500 annually for deposits into the accounts. Click here to read the full report. *** Federal Reserve Chairman Ben Bernanke mentioned children’s savings accounts at birth, and voiced his support for promoting financial education and saving among young people, in his testimony before the House Budget Committee on February 28. Click here to read an excerpt from his testimony. |
Oh, baby: $500 to all newborns? |
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This bulletin is designed primarily for CFED's Partners in the SEED Initiative; however, other policymakers, advocates and practitioners may also find it useful. Please feel free to share it either by forwarding this e-mail or by sending us suggested additions to our mailing list. We welcome your feedback and suggestions. |
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