Senator Servaiso’s plan to use $1.5 billion 529 surplus for scholarships tabled 21–1
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Summary
Senator Servaiso proposed placing an estimated $1.5 billion actuarial surplus from Virginia’s 529 plan into an endowment and using approximately $50 million a year of earnings for college scholarships and aid; the House Appropriations Committee voted 21–1 to lay the bill on the table.
Senator Servaiso told the House Appropriations Committee that an actuarial surplus of about $1.5 billion sits in Virginia’s 529 plan and that his bill would place that money into an endowment to fund college access programs.
"There's about a $1,500,000,000 balance in the Virginia that came out of the Virginia 529 plan," Servaiso said, adding that the surplus stems from leftover money in terminated tuition annuity contracts and profits from management of the 529 plan. "What my bill would do is take that $1,500,000,000 surplus, put it in an account like an endowment, and then take the earnings, it's about $50,000,000 a year, and take that and spend it on college access, financial aid, scholarships, etcetera."
Servaiso estimated the earnings could fund roughly 2,000 full scholarships per year for Pell-eligible students. He described the proposal as a way to put a dormant public resource to work for higher-education affordability.
Committee members voiced interest in follow-up conversations; the chair noted earlier discussions between staff and the senator and asked for more dialogue. A committee member moved to "gently lay this on the table," a motion that was seconded and carried by recorded vote 21–1. No formal adoption or referral occurred during this session.
The bill was tabled; next procedural steps or further committee consideration were not specified in the transcript.