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Committee advances college-access scholarship bill proposing to use Commonwealth Savers surplus for affordability programs
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Summary
A substitute for a bill creating a Virginia college access and affordability scholarship was reported to appropriations after patrons described using Commonwealth Savers surplus earnings to fund scholarships and stakeholders raised concerns about statutory authority and program continuity.
Delegate Dahlia Tran introduced a substitute to establish a scholarship program and a dedicated access fund to increase college affordability, describing it as implementing JLARC recommendations and using earnings from an actuarial surplus in the Commonwealth Savers program (formerly the prepaid 529 program). Tran said the defined-benefit legacy 529 plan holds about $1,400,000,000 in actuarial surplus and that the program has set aside more than $500,000,000 for potential use pending legislative authorization. The substitute directs earnings from surplus into a Virginia College Access and Affordability Scholarship program administered by the State Council of Higher Education for Virginia (SCHEV) and calls for a workgroup to set eligibility and program guidelines.
Supporters including student and teacher advocates told the committee the bill would expand access for low- and middle-income students and could cover expenses beyond tuition — such as fees, housing, books and childcare. Abdul Mohammed, a VCU student and NAACP member, urged support for options that make college affordable. The Virginia Education Association also voiced support.
Commonwealth Savers representatives asked for preservation of the authority they currently hold and warned that striking longstanding statutory authority would inhibit programs that serve tens of thousands of students; Debbie Allen of Commonwealth Savers said the substitute as drafted risks impairing the agency’s ability to continue programs such as SOAR scholars. Delegate Tran said she had worked with Commonwealth Savers and that the substitute maintains the authority to continue existing programs while shifting some future programmatic responsibilities to CHEVE for efficiency.
The committee voted to report the substitute and refer it to appropriations; the clerk recorded the roll as 13 in favor and 5 opposed.
Next steps include negotiations with Commonwealth Savers staff and fiscal review in appropriations.
