Committee advances Many Kids Act pilot to create children�s savings accounts in target counties

Senators advanced the Many Kids Act (SF 3120) after adopting an author's amendment that narrows initial implementation to a pilot in Stearns, Sherburne, Rice and Benton counties and targets Medicaid-eligible births in Hennepin and Ramsey counties.

Aaron Martin, director of policy for the Many Kids coalition, described the bill as the product of multi-year design work and community pilots. The proposal uses an automatic, opt-out account design with a small seed deposit (examples cited: $50 general seed; $100 for Medicaid-eligible births in some drafts) and $300,000 in pilot grants for local outreach and planning.

"A child with just one dollar to $499 saved is three times more likely to enroll in college and four times more likely to graduate," Martin said, summarizing national research on CSAs. Local ambassadors testified about how a modest seeded account changed families' expectations and planning.

The committee adopted the A3 amendment and recommended the amended SF 3120 to pass; it was referred to the Health and Human Services Committee as the bill moves through the legislative process.