Supporters urge steady funding for Oregon Individual Development Accounts; bill would create dedicated fund and quarterly allocations

Proponents of Oregon’s Individual Development Account (IDA) initiative told the House Higher Education Committee on March 25 that HB 3809 with the -1 amendment would restore stable funding for the state’s matched-savings program and expand access for low- and moderate-income Oregonians.

Representative Ricky Drees opened the public hearing describing the IDA program as a proven tool that helps participants save and invest toward higher education, home ownership and small business development. He said the dash-1 amendment replaces an original one-time general fund appropriation proposal with a structural change: creation of an Individual Development Account Fund in the state treasury and quarterly allocations of $2.5 million from the Administrative Services Economic Development Fund (Lottery administrative services).

Luke Bonham, IDA program manager at Neighborhood Partnerships (the program administrator in partnership with Oregon Housing and Community Services), described program mechanics and need: qualifying households enroll with community-based organizations, save toward a goal and receive matching funds (up to $5 matched for each $1 saved). He said 700 individuals are currently saving toward education goals and about 2,200 savers participate overall. Since 1999, approximately 19,000 Oregonians have completed IDAs. Bonham said a $20 million investment over the next biennium would allow the initiative to enroll about 2,000 additional savers; without new funding the program would serve fewer than 500 people per year.

Rebecca Bassett of CASA of Oregon, a fiduciary grantee and subgranter to a network of nonprofit organizations, said CASA has served roughly 2,700 students and paid over $12 million in matching tuition funds. She said the program’s demand outstrips current funding and that, without a fix, participating students and communities statewide would lose services.

Residents and program participants described personal outcomes. Erin Meehan, a GOALS participant and Housing Choice Voucher holder, urged the committee to secure funding so voucher holders and other low-income participants can save toward homeownership and economic stability.

Luke Bonham and others detailed eligibility and program targeting: statute currently limits eligibility to households at or below 80% AMI or 200% of the federal poverty level and imposes a $20,000 net-worth cap for savers (statutory adjustments are applied annually). The witnesses said program funding has not kept pace with inflation or demand since the last major funding increase in 2009 and cited three one-time general fund allocations since 2020 to sustain operations.

No committee vote on HB 3809 was recorded at the hearing. Proponents asked the legislature to adopt the dash-1 amendment creating a dedicated fund and quarterly $2.5 million allocations to return the program to stable footing.