California expands program offering money for college savings to all students
Initially, CalKIDS would provide a ScholarShare 529 account with $25 of "seed" money for every child born in the state. AB 132 expands the program, adding $500 to the account when a child begins first grade in a California public school. The program also offers an additional $500 for children in foster care and $500 more for any children experiencing homelessness.
Lawmakers set aside $1.9 billion in state and federal funding for the first year. It will establish accounts for approximately 3.7 million California students. After that, the program will cost an estimated $170 million each year for all newborns and new first graders.