Bill > S664

This bill establishes a college savings program for every child born in Massachusetts, managed by the Massachusetts Education Financing Authority, with the goal of expanding educational opportunities. Upon a child's birth, a college savings account, referred to as an "Account," will be automatically created, though families can opt out. The commonwealth will initially deposit $250 into each account, called "SEED" funds. For low-income families, defined as those with incomes below 250% of the federal poverty line, the commonwealth will provide an annual matching contribution of up to $250, known as a "Match," on a dollar-for-dollar basis. Funds can be deposited into these accounts by the accountholder, their family, or other public and private entities. Withdrawals are restricted until the accountholder turns 18 or enrolls full-time in post-secondary education, which includes colleges, universities, and vocational schools. Funds can only be used for qualified educational expenses such as tuition, fees, books, supplies, equipment, and travel. Withdrawals must generally be made before the accountholder turns 29, with extensions granted for years of national service. Any unused funds contributed by individuals or private entities will be returned to their source, while SEED and Match funds remain with the commonwealth. Importantly, savings in these accounts will not count towards resource limits for individuals eligible for emergency aid programs. The Massachusetts Education Financing Authority will also select a manager for these accounts, who will have fiduciary responsibility and may establish a default investment program based on the child's age. State agencies will collaborate with non-profit partners to provide financial literacy education to participants and their guardians. Finally, the Massachusetts Education Financing Authority will issue an annual report detailing the program's status and operations.