SB295 Summary

• Establishes an Individual Development Account Program in the Department of Human Resources allowing low-income individuals (household income at or below 80% of state median or 200% of federal poverty guidelines, whichever is greater) to open savings accounts with matching funds from fiduciary organizations.

• Requires account holders to complete financial literacy education, meet minimum six-month savings periods, reach savings goals, and use funds only for qualified purposes including education, home purchase, business capitalization, vehicle purchase, or other department-approved activities.

• Permits emergency withdrawals for medical expenses, eviction prevention, and income loss, with 12-month reimbursement requirement; removes account holders from program for non-qualified withdrawals.

• Exempts deposited account funds and matching funds from gross income for tax purposes and prohibits these funds from affecting eligibility for means-tested public benefits including Medicaid, TANF, and food assistance programs.

• Restricts account deposits to earned income with a $2,000 annual cap, requires fiduciary organizations to spend no more than 15 percent of allocated funds on administration, and makes program funding contingent on legislative appropriation.