AB 2508: Student financial aid: California Kids Investment and Development Savings (KIDS) Program: foster youth.

Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board (board), for purposes of expanding access to higher education through savings. Existing law, for the 202122 fiscal year, requires a KIDS Account to be established for all unduplicated pupils enrolled at a school district, public charter school, state special school, or other local educational agency, if one has not already been established for them, and requires the account to receive an enhanced deposit of $500. Existing law, for the 202122 fiscal year, requires an eligible pupil who is also a foster youth, as defined, to receive an additional enhanced deposit of $500.

Existing law, commencing with the 202223 fiscal year, requires a KIDS Account to be opened for all unduplicated pupils enrolled at a school district, public charter school, state special school, or other local educational agency when the pupil is enrolled in first grade, if an account has not already been established for them, and requires the account to receive an enhanced deposit of $500. Existing law, commencing with the 202223 fiscal year, requires an eligible first grade pupil who is also a foster youth, as defined, to receive an additional enhanced deposit of $500.

This bill, commencing with the 202526 fiscal year and subject to an appropriation by the Legislature, would (1) require a KIDS Account to be opened for a pupil who is a foster youth and is enrolled in any of grades 1 to 12, inclusive, at a school district, public charter school, state special school, or other local educational agency, if an account has not already been established for them, and would require the account to receive a one-time enhanced deposit of $500, and (2) authorize require an additional enhanced deposit of $500 for those foster youth who did not previously receive the above-described deposits for unduplicated pupils in the 202122 fiscal year and unduplicated pupils in the first grade commencing with the 202223 fiscal year, as provided. The bill would limit the one-time enhanced deposits provided by the bill to the KIDS Accounts of those foster youth that had not already received one of the above-described enhanced deposits for foster youth. The bill would, commencing with the 202526 fiscal year, require the board to collaborate with the State Department of Education to establish a process to enable a foster youth pupil who met any of the above-described eligibility criteria related to enhanced deposits for foster youth, but who did not receive the applicable enhanced deposit due to a failure in the identification process, to subsequently receive the enhanced deposit. would make these new provisions relating to enhanced deposits for foster youth inoperative on January 1, 2029.