Senate Bill 1229 - Michigan KIDS Investment and Development Savings Program

• Establishes the Michigan Kids Investment and Development Savings (KIDS) program administered by the Department of Treasury to expand higher education access through state-funded savings accounts for eligible children.

• Automatically opens KIDS Accounts for all children born in Michigan on or after October 1, 2023, with an initial seed deposit of at least $25.00, unless parents opt out within 90 days of birth notification.

• Provides enhanced deposits of $500.00 for pupils in grades 1-12 from low-income households (annual income under $75,000), and additional $500.00 deposits for low-income pupils who are foster children or experiencing homelessness.

• Allows accumulated funds and investment earnings to be used only for qualified higher education expenses at eligible institutions, with forfeited funds returning to the program; accounts remain state assets until used for education expenses or beneficiary reaches age 26.

• Creates a dedicated fund in the state treasury and requires annual reporting to legislative committees on program expenditures, account openings, investment returns, and demographic information of account recipients.