Gov. Newsom highlights CalKIDS and encourages use with federal savings accounts

Governor Gavin Newsom used a press conference to launch the California Golden Start Challenge, a collaboration with Invest America designed to boost savings for children. The initiative spotlights CalKIDS, a state-funded program that provides eligible youngsters with accounts worth up to $1,500 for higher education or career expenses. Newsom said CalKIDS can be used alongside federal 530A, often referred to as Trump accounts, and urged families to take advantage of both.

Since its 2022 debut, California has opened over six million CalKIDS accounts, but only roughly one million have been activated by families. Policy analyst Lance Izumi praised the program but questioned why the state opposes K-12 education savings accounts.