Recent State News
New Illinois law gives every child born after 2021 money for college
Starting Jan. 1, 2021, every child born or adopted in the state of Illinois will get $50 deposited in their college savings account or 529 plan.It’s part of a new law, which introduces the Illinois Higher Education Program.Local Quad City financial experts say the cost to attend college keeps going up 5 to 6% each year.State legislators passed this law to combat those rising college tuition costs, and lawmakers hope it will remind parents to contribute to their child’s college fund starting at birth.
NJ Governor proposes $1,000 'baby bond' for children to close wealth gap
New Jersey Gov. Phil Murphy (D) proposed on Tuesday a $1,000 “baby bond” nest egg for children from lower income families in an effort to close the wealth gap in the state.The governor included the baby bond proposal in an amended state budget, as a scaled-down version of Sen. Cory Booker’s (D-N.J.) congressional legislation to address the gap in wealth. Murphy said the idea was “inspired by the trailblazing work” of Booker to address financial inequities specifically between white and Black families.The proposed baby bonds would provide $1,000 to each child born in 2021 into families earning less than about $131,000 per year or 500 percent of the federal poverty level, helping about three of every four children born in the state.
Working Families College Savings Act Extended Until 2032
The Working Families College Savings Act, originally enacted in 2019, has been extended for ten years by the Colorado legislature. The bipartisan act provides an innovative resource for Colorado employers to boost their employees’ CollegeInvest 529 savings accounts. The original legislation ensured the program would continue through 2022; now with this extension the program will continue to boost the college savings of Colorado families through 2032.The plan offers a Colorado tax credit for employers who make contributions to CollegeInvest savings plans owned by their employees. The accounts can be used by any beneficiary including children, grandchildren, nieces, nephews, even for the employee’s own higher education goals. The available tax credit is 20% of the amount contributed to a CollegeInvest 529 account, up to $2,500 per employee. Within that scope, employers will have the flexibility to design specific benefit strategies that best suit their business needs, and the needs of their employees.