Beginning Wednesday, all families of low-income public school students - 3.4 million statewide - can now access college savings accounts created in their children's names, with initial investments ranging from $500 to $1,500.
The program CalKIDSlaunched Wednesday, invests $1.9 billion in accounts for low-income school-age children in grades 1-12 and for newborn children beginning July 1, 2022.
"California is telling our students that we believe they are college material; not only do we believe it, but we will invest in them directly," said Governor Gavin Newsom. "With up to $1,500, we are transforming lives, generating college mindsets and creating generational wealth for millions of Californians."
"I am proud and excited to finally see CalKIDS in action," said Assemblyman Adrin Nazarian. "My goal with this program was to close the gap between wealth inequality and the high cost of education. CalKIDS will expand access to college through savings by providing every child born in the state of California with an initial deposit into a ScholarShare 529 college savings account."
He further specified that, thanks to the investment and expansion of the Making College More Affordable for California's Low-Income Children Program, additional deposits will be made for low-income first-graders statewide, with supplemental deposits for homeless and foster youth.
"Our shared vision ensures that every child across the state will have an opportunity in higher education," he stressed.
Up to US$1,500 for 3.4 million school-age children:
- 500 automatic deposit: Eligible low-income public school students in grades 1-12.
- Additional $500 deposit: Eligible low-income public school students in grades 1-12 identified as foster youth.
- Additional $500 deposit: Eligible low-income public school students in grades 1-12 identified as homeless.
Up to $100 for newborns:
- Automatic deposit of $25: each eligible child born on or after July 1, 2022.
- Additional Deposit of US$25: Those who register in the online portal of the program.
- Additional $50 deposit: Those who link a new or existing ScholarShare 529 account to the CalKIDS account.
Californians can begin accessing their accounts through the online portal now. In the coming months, CalKIDS will send notification letters to qualifying children and families with more information.
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