Colorado joining federal initiative to allow child welfare agencies to open investment accounts for foster youth

STATEWIDE, Colo. (KRDO) -- Colorado Gov. Jared Polis announced the state will opt into a new federal initiative that would allow child welfare agencies to open investment accounts for eligible kids in foster care.

Gov. Polis announced the news today, saying the state would work with the federal government and other partners to help create the new pathway.

The program will allow the child welfare agencies to open tax-advantaged savings accounts along with investment accounts for children under the age of 18 with a valid Social Security number. The new initiative, "Fostering the Future," is designed to allow foster children a similar chance to build long-term savings as other children can through a parent or guardian, according to the governor's office.

Qualifying kids must be born between Jan. 1, 2025 and Dec. 31, 2028. According to officials, they can receive an initial $1,000 contribution from the U.S. Department of Treasury. From there, families, employers, businesses and philanthropic organizations can make additional contributions up to $5,000 per account.

Withdrawals can start at 18 for qualifying events like paying education expenses, according to the governor's press release.

More information on the initiative is available on the governor's website.

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