ABOUT THE MINNEKIDS BILL

The Minnesota Kids Investment and Development Savings Act

HF 2908 (Representative Kotyza-Witthuhn)/SF3120 (Senator Putnam)

The Minnesota Kids Investment and Development Savings (MinneKIDS) Act is a bill that would allow the state of Minnesota to create a 529 college savings program to help children build savings for their future, such as college, technical school, apprenticeships, and more. Accounts would be opened by the state for every baby born after June 2026, with small deposits made to seed the account. Accounts grow through family contributions and incentives, such as savings matches. Savings help pay for postsecondary education. Research shows that kids with college savings accounts are 3X more likely to attend college and 4X more likely to graduate.

KEY BILL ELEMENTS

Eligibility: Every baby born in Minnesota starting July 1, 2026, automatically gets an account at birth via automatic enrollment. Families do have the option to opt-out.

Initial Seed Deposits:

$50 for every baby statewide

$100 for low-income babies

Savings Growth: Accounts grow through family contributions, incentives, and matches. As these are investment accounts, the amounts will also grow from interest accrual via targeted investment options.

Postsecondary Uses: Savings can be used for college, technical schools, apprenticeships, and other 529-eligible expenses.

Local Community Support: Along with the bill, we’re asking for additional grants available for community engagement, coordination, and additional savings contributions. If passed, this would allow for local communities to apply for grants to convene stakeholders, use for marketing, programming, wraparound support, staffing for local coordination, or to build the MinneKIDS accounts with additional deposits.

Impact:

Kids with a CSA are 3x more likely to attend and 4x more likely to graduate college.

Research shows small savings accounts improve students’ educational aspirations.

Helps address educational disparities and builds a "college-going identity" from birth.

Encourages long-term investment in Minnesota’s future workforce.

Robust research on outcomes including education, health, parenting, and more.

Aministration: Accounts will be managed centrally through the Office of Higher Education with investment options under MNSAVES (Minnesota’s 529 plan). Accounts will allow for integration of account vehicles for savings.


Want to learn more about our vision for a statewide CSA program? Learn more about how we worked together as a community to develop this statewide blueprint for success here.

What do Minnesotans think about the MinneKIDS act?

THE BOTTOM LINE:

Widespread, BIPARTISAN support exists for creating a program like MinneKIDS.

The Minnesota Community Survey, conducted by Lumaris Research between December 4, 2024, and January 20, 2025, offers insights into Minnesotans' perceptions of theMinneKIDS program.

58% of all Minnesotans favor creating a program like MinneKIDS.

When asked if they supported the creation of a program that would allow the state to create 529 accounts and make small deposits into these accounts, the results were clear - Minnesotans statewide, across nearly all demographics, largely support creating a program like MinneKIDS.

Including Minnesotans from every corner of the state

  • 60% of Minneapolis/Saint Paul residents

  • 62% of Suburban residents

  • 56% of Greater Minnesota residents

Across income levels

  • 59% of low income residents

  • 60% of middle income residents

  • 60% of upper income residents

Including people of all ages

Age ranges of Minnesotans who said they favor creating a program like MinneKIDS

and people from all races

self-identified races of of Minnesotans who said they favor creating a program like MinneKIDS

Minnesotans like the idea of the state investing in their kids’ future.

Interest in participating in a statewide 529 program like MinneKIDS is high across nearly all groups and regions in Minnesota.

95% of Minnesotans with school-age children want their kids to pursue more education after high school.

But only about 50% of these families are currently saving for college

The biggest barrier families experience is simply not having sufficient income to save for their child’s postsecondary education.

MinneKIDS is the solution to pave the way for more kids in Minnesota to access post-secondary education.

About the survey:

This survey was conducted from December 4, 2024 to January 20, 2025. A total of 1,477 panelists responded to this survey out of 2,893 sampled, resulting in a response rate of 51%. The margin of sampling error for all respondents is plus or minus 3.35 percentage points. Recruitment to the panel was conducted in English, Spanish, Hmong, and Somali. Lumaris Research weighted the survey to adjust the sample to the target population of Minnesota adults. The weighting process employed a two-step approach to adjust for differential probabilities of selection at the recruitment stage and to calibrate to known population benchmarks.

Participants in the December-January wave were asked to respond to questions that specifically asked them about the creation of a program like MinneKIDS, including having accounts being opened by the state with small deposits made at birth or once they start kindergarten. Respondants were asked to keep this in mind as they answered the questions.

About Lumaris Research:

Lumaris Research is a social enterprise that strengthens Minnesota communities through rigorous survey research and focus groups. Lumaris helps inform key decisions in communities across Minnesota through methodologically sound, non-partisan research.

Learn more at www.lumaris.com