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Spotlight Story
The Impact of COVID-19 on the CSA Field
As the COVID-19 pandemic continues to impact families and communities across the country, Children’s Savings Account (CSA) programs have been tasked with adapting their program operations to remote work; finding new ways to engage families and participants; and reframing their messaging around long-term savings in the midst of an immediate crisis. To gain insights on the impact of the COVID-19 pandemic on the CSA field, Prosperity Now held a listening session for CSA programs on March 27. This session provided an opportunity for practitioners and stakeholders in the field to discuss programmatic challenges, and to share new strategies for remote engagement, communication, and relationship building with participants and their families. Read more [[link removed]] about what we heard from the field.
The Movement Reaches New Heights: The State of the Children’s Savings Field 2019
The Children's Savings Account [[link removed]] (CSA) movement grew exponentially in 2019, as shown in our new report, The Movement Reaches New Heights: The State of the Children’s Savings Field 2019 [[link removed]]. Based on Prosperity Now’s 2019 CSA program survey, this fourth annual report provides a snapshot of the CSA field in 2019 and discusses trends in CSA program models. Read highlights from this year’s report here [[link removed]].
It is important to note that this survey was conducted during the fall of 2019, and that the report was prepared in early 2020 before the COVID-19 pandemic. We anticipate that the pandemic will have an impact on the development and growth of the field in 2020, and that these effects will be reflected in the 2020 report to be published next year.
In the News
Senator Casey Plans to Introduce a CSA Bill
As part of a package of legislation to promote Five Freedoms for American Children [[link removed]], Sen. Bob Casey (D-PA) has proposed creating a national CSA program. [[link removed]] The initial plan is to establish a CSA for every child under 18 whose parent or guardian has an annual income of less than $100,000. $500 would be deposited into children’s accounts each year based on their household’s tax returns. Households eligible for the EITC could receive a savings match of up to $250 per year.
Legislation to Make Changes to Flawed Maryland Save4College Program Passes Senate
The Maryland legislature held hearings in early March about proposed changes to the state’s Save4College program [[link removed]], which launched in 2017. The program has two major challenges [[link removed]]. First, the legislation to establish the program never specified a limit of one match per child, so some families are opening multiple 529s for their children to receive extra match. For example, one family with four children received over $97,000 in matches. [[link removed]] The second challenge is that the legislation was passed prior to the 2017 Tax Cuts and Jobs Act. Because of this, it didn’t specify that the match can only be used for postsecondary education, since at the time, 529s were limited exclusively to postsecondary education. Many people have been claiming the money to pay for K-12 private and religious education. Advocates, led by the CASH Campaign of Maryland [[link removed]], urged the legislature to fix these challenges. A bill to address some of the challenges, SB615 [[link removed]], passed the Senate. However, the legislative session ended early on March 18 due to the COVID-19 pandemic before the House could take it up.
From the Field
San Francisco K2C Launches a New Equity Incentive
San Francisco’s Kindergarten to College [[link removed]] program recently launched the “Empowerment Incentives” initiative to boost the accounts of children from low-income households. The program will automatically deposit $150 into the accounts of first grade students at nine historically underserved schools identified by the school district. Another $150 in Empowerment Incentives will be credited to families who contribute $5 or more during any given month, for a maximum of $300. Between the $50 initial seed deposit, $150 automatic empowerment incentive and opportunity to earn another $300 based on deposits, eligible students can receive up to $500 in their accounts. Due to the COVID-19 crisis, the deadline for families to make deposits has been extended to June 30, 2021.
Providence Promise is Finding New Ways to Connect Virtually
Providence Promise [[link removed]] has been using new outreach and engagement strategies to stay connected with families and partners during the COVID-19 crisis. Remote staff have been staying in touch with families and partners through phone calls, zoom conferences, and social media. On April 30, Providence Promise began offering “virtual enrollment.” Since then, the program has enrolled eight new students. In an effort to uplift Providence students, and to support the Rhode Island Department of Education’s April Reading Challenge, the program is delivering “care packages” containing books, toys, and snacks to participants. During the first several days of this program, 37 kids from 19 families received care packages.
Resources and Publications
Native Children’s Savings Initiatives in the United States [[link removed]] | ONAC | January 2020
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