New York City’s next budget revealed Tuesday includes funding to open $1,000 college savings accounts for every public school kindergartner, making it the largest program of its kind in the United States.
The $53 million investment — a tenfold expansion of an existing program called NYC KIDS RISE — aims to help families build wealth, expand access to higher education, and increase future wages for current students. The city’s current contribution is $100.
“This will be the nation’s largest universal college savings program in the country, and the impact of a college savings account lasts long after students receive their diploma,” Council Speaker Julie Menin said at a news conference as she shook hands with Mayor Mamdani on the budget deal.
The growth of NYC KIDS RISE was a primary focus for Menin, who helped launch the college accounts more than a decade ago while she served as the city’s commissioner of consumer affairs.
Earlier this month, Menin told The New York Times the program was her “highest budget priority” — though discussions about local housing vouchers dominated the final stretch of negotiations.
Students can use the savings to enroll in four-year college, community college or vocational school.
Kindergartners are automatically enrolled in the program unless their parents choose to opt out. The funds are invested in what is known as a “529 plan,” a tax-advantaged account that helps people save for college.
Families can contribute to the college savings accounts, as can local businesses, organizations and institutions through “community scholarships.”
The Council had pushed for an even higher city contribution of $3,000 for children from low-income families. It was not immediately clear as of Tuesday morning if that was omitted from the final budget deal; the Daily News has reached out to the Council for clarification.
At the news conference, Menin cited studies that found individuals who receive post-secondary education will earn almost double the wages over the course of their lifetimes as they would with only a high school education.
“This is simply one of the most effective ways we can truly address income inequality,” Menin said. “So we are not simply investing in the future of our children, but also in the future of our great city.”