(Sacramento, CA) The California State Assembly has passed a ground breaking effort to reduce wealth inequality for all California children by a vote of 75-0. This effort complements Governor Newsom’s effort to expand child savings accounts similar to the program he started in San Francisco as Mayor.
AB 15 will create a statewide child savings account program by tasking the Scholar Share Investment Board to operate a master 529 account, owned by the state. Each child born in California will automatically be enrolled in the account at birth and receive an initial seed deposit of at least $25. Savings from the account could be used for a number of different higher educational purposes such as tuition at a college, university, trade school or graduate program; room and board; books; computers; and other related qualified expenses.