Oregon advocates push for increased funding for Individual Development Accounts program

The Senate Committee on Finance and Revenue convened on April 23, 2025, to discuss critical funding issues surrounding the Oregon Individual Development Account (IDA) Initiative, which has been a cornerstone of economic support for Oregonians since its inception in 1999. The meeting highlighted the existing income tax credit for donations made to IDAs, which currently stands at a cap of $7.5 million, unchanged since 2009. This credit allows taxpayers to receive a 90% credit on their donations, but it has not kept pace with inflation, leading to concerns about the program's sustainability.

Ethan Livermore, an economic justice organizer with Neighborhood Partnerships, emphasized the urgency of addressing the funding limitations. He noted that if the legislature does not act, the program could see a 50% reduction in enrollment, impacting the ability of Oregonians to access essential financial support for goals such as homeownership and education. Livermore urged lawmakers to consider House Bill 3809, which proposes dedicating lottery revenue to supplement the existing tax credit, or House Bill 2735, which seeks to raise the cap on the IDA tax credit.

Justice Hager, Development and Communications Manager for Neighborhood Partnerships, echoed these concerns, stating that while the tax credit has been a stable funding source, it has not adapted to rising costs over the past 16 years. Hager highlighted the importance of the program in fostering financial stability for families and communities, noting that increasing the tax credit could alleviate the need for additional legislative funding requests in the future.

The committee's discussions underscored the critical need for legislative action to ensure the continued success of the IDA program, which has positively impacted over 19,000 Oregonians. As the session progresses, the fate of these proposed bills will determine the future of financial support for individuals seeking to improve their economic standing in Oregon.