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Mini Kids bill would open 529 subaccounts for every Minnesota baby; sponsors plan technical work after layover
Summary
House File 2908 would create automatic child savings subaccounts (Mini Kids) under Minnesota’s 529 plan for babies born after mid-2026, with an initial seed deposit and additional incentives targeted at low-income families; committee discussion focused on fiscal notes, program design and existing local programs.
Representative Kathez Watoone presented House File 2908, the Minnesota Kids Investment and Development Savings Account (Mini Kids) proposal, to create state-initiated 529 subaccounts for children born after July 1, 2026.
Program structure described by sponsors and testifiers: the Office of Higher Education would open a 529 subaccount for each eligible child using birth data provided by the Department of Health and set up accounts within 90 days of birth. The plan outlined an initial deposit of $50 for all newborns and $100 for babies from low-income families; accounts would accept family contributions, philanthropic and employer deposits, and state incentives. Sponsors said accounts would be usable for qualified higher education expenses, apprenticeship programs, and other postsecondary options under 529 rules.
Support and community pilots: testimony from community partners and pilot leaders (College Bound St. Paul, United Way of Central Minnesota, Initiative Foundation) emphasized community engagement during the 2023 pilot and cited research that even minimal savings increase the likelihood of college enrollment and completion. A St. Paul parent testified about personal experience with College Bound and the difference a seeded account made for her family.
Committee questions and concerns: members asked about fiscal impact; a fiscal note had been requested and was pending in the fiscal note system. Representative Rehrig asked whether the program duplicates existing 529 accounts; sponsors said the Mini Kids accounts are designed for automatic enrollment with subaccounts under a 529 so philanthropic deposits and targeted outreach could operate at scale. Representative Robbins raised concerns about disbursement processes that rely on self-certification and the proliferation of new local grant programs created under the bill; sponsors said program design and implementation details would be adjusted as the bill is refined.
Action: the committee laid House File 2908 over to allow further technical work, fiscal analysis and coordination with agency partners and local programs.
Next steps: sponsors and committee staff will await the fiscal note and continue drafting implementation details, including verification procedures for disbursements and coordination with existing community programs.
