Purpose of the Bill

This bill aims to establish a statewide Childrens Savings Account Program in Minnesota to support higher education expenses for children. The program includes creating personal savings accounts, known as "MinneKIDS accounts," for eligible children and providing grants to local partners to encourage college readiness and savings.

Main Provisions

• Creation of MinneKIDS Accounts: The bill mandates the creation of a MinneKIDS account for every eligible child born on or after July 1, 2026, who is a resident of Minnesota. Each account will initially receive a "seed deposit" from the state.
• Opt-out Option: Parents or guardians can opt their children out of the MinneKIDS program if desired.
• Additional Deposits for Low-Income Households: Additional seed deposits are provided for children from low-income households to encourage savings.
• Eligible Uses: Funds in the MinneKIDS accounts must be used for qualified higher education expenses at eligible educational institutions only, with funds reverting to the state's higher education investment account if not used by age 26.
• Local Partner Grants: The bill introduces the MinneKIDS Local Partner Grant Program, offering financial support to local governments, tribes, nonprofit organizations, and other groups for developing or enhancing local college savings initiatives.

Significant Changes

• Amending Current Statutes: Changes the Minnesota Statutes section 136G.03 to introduce various terms and structures related to the MinneKIDS program.
• New Accounts: Establishes new financial structures within the state’s investment framework for children's future educational expenses.
• Statewide Educational Savings Strategy: Implements a comprehensive strategy involving state and local bodies to promote educational savings from an early age.

Required Reporting

The Office of Higher Education must report by February 15, 2028, on the implementation and outcomes of the program, including expenditures, account activities, and program recommendations.

Relevant Terms

MinneKIDS accounts, higher education, children's savings account, local partner grants, seed deposit, low-income households, educational institutions, grant program.