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Spotlights CSA Activity Abounds in California

Children’s Savings Accounts (CSAs) have taken center stage in California recently. In May, Gov. Gavin Newsom (D) proposed using $2 billion [[link removed]] of the federal money sent to California as part of the American Rescue Plan (COVID-19 relief) to seed CSAs through a new effort, the California Opportunity Fund. Under the proposal, public school students in first through 12th grade who qualify for free or reduced-price lunch would have received $500, with children who are homeless or in foster care receiving an additional $500.

After receiving the governor’s proposed budget, the legislature reduced the amount of funding to $950 million and redirected it toward the state’s not-yet-launched, at-birth CSA program, CalKIDS, along with an additional $170 million in ongoing annual funding for the program. Negotiations are pending on the final budget.

Elsewhere in the state, Opportunity LA [[link removed]], a CSA program serving the Los Angeles Unified School District (LAUSD), officially launched with nearly 13,000 first-grade students across 196 schools [[link removed]] identified as high need. The program will expand to include all 35,000 LAUSD first-grade students by the end of 2021. The universal, opt-out program provides a $50 initial seed deposit to each participant in a custodial account held at Citibank.

Connecticut Leads on Baby Bonds

Connecticut’s Legislature pushed the national discussion on Baby Bonds [[link removed]] into high gear, becoming the first state to pass a bill creating a state-level Baby Bonds program [[link removed]]. Under the program, $3,200 will be invested on behalf of Connecticut babies born after July 1, 2021, who are enrolled in the state’s Medicaid program, HUSKY Health. While the total investment for children is less than the national Baby Bonds program proposed by Sen. Cory Booker (D-NJ) and Rep. Ayanna Pressley (D-MA-7) in the American Opportunity Accounts Act [[link removed]], it is an important step forward in Prosperity Now and other advocates’ efforts to build momentum for a national program. It also is a significant victory for the estimated 16,000 Connecticut babies who will benefit each year.

Mayor de Blasio Announces Expansion of NYC Kids Rise To All Public School Children

As part of his Juneteenth Economic Justice Plan [[link removed]], New York City Mayor Bill de Blasio (D) announced an expansion of the NYC Kids RISE [[link removed]] Save for College Children’s Savings Account (CSA) program for all kindergarten students in the city’s public schools beginning next school year. The program will provide a minimum of $100 in each account, with the city investing $15 million annually through 2025, he said. Although de Blasio called the program “universal Baby Bonds,” given the size of the initial deposit and the focus on savings, it is more accurately a universal CSA program.

The NYC Kids RISE [[link removed]] recently held a virtual event, “Creating a Community Wealth-Building Model for NYC: Lessons from the Pilot Phase of the NYC Kids RISE Save for College Program” to celebrate the accomplishments of the program’s pilot phase. The event, which was co-sponsored by Prosperity Now, United Way of New York City, NYC Opportunity and others, focused on its role as a community wealth-building platform and how to scale it to other New York City schools and neighborhoods. The program also released a series of briefs and videos [[link removed]] telling the story of the pilot.

In the NewsRep. Cartwright Reintroduces the CSA Opportunity Act

On May 20, Rep. Matt Cartwright (D-PA-8) re-introduced The CSA Opportunity Act [[link removed]], which Prosperity Now has endorsed. This legislation would allow families to save money for their children’s postsecondary education in CSA and regular 529 accounts without becoming ineligible for financial benefits like Temporary Aid for Needy Families (TANF), Supplemental Security Income (SSI), Low Income Home Energy Assistance Program (LIHEAP) or Supplemental Nutrition Assistance Program (SNAP).

Santa Cruz SEEDS is Investing in Babies’ Futures

Lookout Santa Cruz featured the Santa Cruz SEEDS [[link removed]] program, which launched in 2019, in a recent article [[link removed]]. The program automatically provides a CSA to every child born in Santa Cruz County, CA. Every child receives a $25 initial deposit into their account, while children from low-income families receive a $50 deposit. Inclusivity was one of the top priorities in designing the program, with low-income parents, undocumented parents, Dreamers and first-generation college students participating in the design process. Program advocates hope to address increasing wealth gaps through a more equitable distribution of funds, while also focusing on the importance of saving and building assists long-term.

From the FieldBrilliant Baby Evaluation Shows Promising Results

Oakland Promise [[link removed]] released the first of several reports documenting the impact of the Brilliant Baby CSA program on participating children and their families. Brilliant Baby serves children and families who are eligible for MediCal. Babies receive $500 invested in a 529 account and parents have the opportunity to participate in financial coaching. The Oakland Promise Brilliant Baby Six-Month Impact Report [[link removed]] covers the period from baseline to six months post enrollment. Key findings detailed in the report include increased parental expectations for their children’s educational attainment, lower stress levels for parents after six months and improvements in families’ financial well-being after six months.

Newly-Updated CSA Overview Available

Prosperity Now recently published Invest in Every Child’s Future with Children’s Savings Accounts [[link removed]], an updated version of a document originally published in 2017. The brief is a useful way to introduce people to CSAs and help answer frequently asked questions. It provides an overview of the purpose of CSAs, how they work and their benefits. It also includes answers to frequently asked questions about CSAs, such as whether CSAs affect families’ eligibility for public benefits, the costs associated with running a CSA program and how CSAs are different from state 529 plans.

St. Louis College Kids Raises $20,000 on Give STL Day

The St. Louis College Kids [[link removed]] program raised more than $20,000 through the annual Give STL Day. Give STL was held online on May 6 and sponsored by the St. Louis Community Foundation as part of its effort to connect donors with the St. Louis community and strengthen local nonprofit organizations.

Tacoma Housing Authority is Making Changes to Increase Accessibility for Students and their Families

Tacoma Housing Authority (THA) has always had a unique Children’s Savings Account (CSA) program model, which pairs tenant housing assistance with CSA accounts. The program, which started in fall 2015 in partnership with Tacoma Public Schools (TPS), helps families living in THA’s Salishan community in Tacoma, WA, by combining housing stability and access to economic opportunities through education. Now, after an extensive strategic redesign process, THA is planning to make big changes to the CSA program to increase accessibility and develop a more holistic approach to community engagement and postsecondary education. Read more. [[link removed]]

Resources and Publications

Invest in Every Child's Future with Children's Savings Accounts [[link removed]]| Prosperity Now| May 2021

Oakland Promise Brilliant Baby Six-Month Impact Report [[link removed]]| Oakland Promise| June 2021

Baby Bonds Social Media Toolkit [[link removed]]| Prosperity Now| June 2021

Baby Bonds Video [[link removed]] | Prosperity Now| June 2021

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