Purpose of the Bill

The bill aims to establish a statewide children’s savings account program in Minnesota to support higher education funding. It introduces the MinneKIDS program, which includes a system of designated accounts for children, and provides grants for local entities to facilitate the program's implementation and expansion. The goal is to encourage savings for college and improve college readiness.

Main Provisions

• MinneKIDS Accounts: These accounts are created for eligible Minnesota residents under the age of 18, born on or after July 1, 2026. An initial seed deposit and additional incentives for participation and linkage to existing savings accounts are provided by the state.

• Eligibility and Contributions: Accounts are automatically created at birth unless opted out by a parent or guardian. Contributions can be made only by designated entities. The funds in these accounts, including any investment earnings, remain the property of the state until used for qualified higher education expenses.

• Local Partner Grants: The bill establishes a grant program to support local governments, tribal governments, and non-profits in designing and implementing college savings programs. Grants are divided into two types: design grants for entities establishing new programs and implementation grants for those enhancing existing programs.

• Funding and Reporting: The bill provides appropriations from the state’s general fund to finance the MinneKIDS accounts and the local partner grant program. It also mandates reporting on program implementation and success to legislative committees by 2028.

Significant Changes to Existing Law

The bill amends existing Minnesota statutes to include new definitions and structures for the implementation of the MinneKIDS program. It specifies the layout and administration of savings accounts intended solely for post-secondary education expenses and introduces a framework for reporting and improving the program over time.

Relevant Terms

• MinneKIDS accounts
• Children's savings program
• Higher education expenses
• Local partner grants
• College readiness and savings
• Seed deposit
• Low-income households