California launches nation’s largest college savings program for millions of low-income college students and newborns

Governor Gavin Newsom this week launched the nation’s largest college savings program for millions of low-income public school students in California.

The CalKIDS program is a taxpayer-funded scholarship program that encourages children to start saving for college as soon as they are born. The program invests $1.9 billion in accounts for low-income children in grades 1 through 12 and for newborns born on or after July 1 this year.

Seed investments give each newborn up to $100 and between $500 and $1,500 for school-age children.

“California tells our students that we believe they are college stock – not only do we believe that, but we will invest in them directly,” Newsom said in a statement. “With up to $1,500, we’re transforming lives, igniting student mindsets, and creating generational wealth for millions of Californians.”

The tax-free money is invested in a mutual fund managed by ScholarShare, the state college savings plan. Then it can be used for tuition and books.

CalKIDS will send notification letters to eligible children and families in the coming months, officials said. Click here to find out if you are eligible to receive the money.

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