Senate Bill 2359 Summary

• Creates the Family Empowerment Initiative allowing low-income Mississippi residents with gross household income not exceeding 185% of federal poverty level and net worth under $10,000 to establish Individual Development Accounts (IDAs) through approved fiduciary organizations.

• Provides matching funds at a rate of $3 for every $1 contributed by account holders, capped at $2,000 per individual or $4,000 per household annually, available after account holder saves for 6 months and completes financial literacy training.

• Permits IDA funds to be withdrawn for qualified purposes including postsecondary education, home purchase or repair, small business capitalization, automobile purchase, and assistive technology, with emergency withdrawals allowed if reimbursed within 12 months.

• Authorizes Mississippi Development Authority to contract with nonprofit organizations, community development financial institutions, and credit unions as fiduciary intermediaries, with 70% of contract funds for matching contributions and no more than 15% each for operating and administrative costs.

• Excludes IDA deposits and earnings from counting as income or assets for means-tested public benefits eligibility and provides state income tax credit of 50% of matching funds contributed (capped at $25,000 annually) for taxpayers who contribute to fiduciary organizations.