Universal Children’s Savings Account Program
Origin: Vermont State Legislature
Bill Name/Number: H 448
Link: Click here
Summary: Passed in May 2015, this act will open a savings account for every baby born in Vermont - $250 will be
deposited for those who are not low-income and $500 for those who meet federal poverty guidelines. The savings
accounts will be funded through philanthropic contributions from foundations and fundraising efforts – not from
state taxes.
Talking Points & Important Information:
• Children who have even small savings accounts for college are 7 times more likely to attend and graduate from
college than those who have no savings account.
• Universal savings plans and automatic deposits at birth enshrines engages parents and children from the
beginning and enshrines the value of pursuing higher education. In fact, college enrollment among low-income
students has risen though significantly lags enrollment by middle- and high-income students. In 2012, about
51 percent of recent low-income high school graduates and equivalency holders were enrolled in college, while
enrollment among middle- and high-income students had risen to nearly 65 percent and 81 percent.
• Vermont’s current program is modeled after Maine’s, the first state in the union to offer a universal savings plan
to its youngest residents. For more information on universal and automatic deposits at birth, click on this report
from the Washington University in St. Louis.
2015 POLICY BOOK
STATE
INTRO
LEVEL
PAGE 31