Committee lays over $1.5M proposal to maintain FAME savings-and-match program funding

House File 7,076 — a proposal to add $1,500,000 to the base funding for the Family Assets for Independence in Minnesota (FAME) program in each fiscal year 2026–27 — was laid over for possible inclusion in a later omnibus bill after a public hearing before the House Children and Families Committee.

Vice Chair Hansen introduced the bill and described FAME as a program that provides financial coaching and a savings match to help low-income Minnesotans purchase assets such as a home, a car or education. "FAME helps Minnesotans save money for key investments that create long term financial stability," Hansen said.

David Snyder, director of FAME, told lawmakers the program triples qualifying savings up to $4,000 over two years (yielding up to a $12,000 match under the temporarily increased match) and provides coaching on budgeting, credit repair and asset-specific education. He said a one-time funding boost in the last biennium expanded account capacity from about 65 to around 200 accounts and allowed partnerships with eight new agencies, including tribal and culturally specific organizations.

Multiple lawmakers and two program participants testified in support. Mayra Espitia, a FAME participant, described leaving a domestic violence shelter and buying a house in 2023 with support from the program. Representative Hicks and others recounted constituent success stories and cited handout data that showed thousands of assets acquired through FAME's history: "through 2024 over 3,300 assets have been acquired and 30% of that is home purchases," Representative Kolter said.

Committee members asked several program-design and accountability questions. Representative Nadeau asked how many graduates had moved beyond 200% of the federal poverty guidelines and how much the program reduced reliance on public benefits; program director Snyder said he would follow up with precise statistics, noting anecdotal and evaluation data suggest many participants see increased income or leave public benefits after completing the program. Representative Olsen asked about the program's 3-to-1 match ratio and whether a lower match could stretch funds to more participants; Snyder said the larger match was intentionally designed to help very-low-income savers attain assets in today's market.

Action: House File 7,076 was laid over for possible inclusion in a later omnibus bill. No appropriation was enacted at the hearing.

Why it matters: Supporters said FAME combines coaching with a financial incentive to produce measurable asset-building results such as home purchases and college enrollment. Lawmakers debated scale, evidence and cost-effectiveness while many lawmakers urged preserving the program's funding in the tight budget environment.

What’s next: Committee staff and the program agreed to follow up on data requests, including counts of account holders, outcomes by income band, and the most recent evaluation results; the measure was laid over for omnibus consideration.