Hawaii becomes first state to guarantee funded savings accounts for eligible foster children

News admin July 3, 2026 0 Comments

Hawaii becomes first state to guarantee funded savings accounts for eligible foster children

HONOLULU (HawaiiNewsNow) – Gov. Josh Green announced Friday that Hawaii will become the first state to ensure every eligible child in foster care, from newborns through age 17, has a funded, tax-advantaged savings and investment account.

The effort combines federal money with private contributions through partnerships with the Michael & Susan Dell Foundation and Ed Freedman’s Stable Road Foundation to close remaining gaps in coverage.

The accounts are part of the national “Fostering the Future” initiative, established under a federal Section 530A program. Children can access the Treasury-backed investment accounts beginning at age 18, allowing funds to grow over time.

Under the plan, the federal government provides a $1,000 seed contribution for eligible children born between 2025 and 2028. The Michael & Susan Dell Foundation will provide $250 for eligible foster children age 10 and under who were born before 2025. Stable Road Foundation will provide $250 for eligible foster children ages 11 through 17.

By combining the contributions, the state said every eligible foster child in Hawaii will receive both an account and seed funding, regardless of age.

“Our responsibility is to give every child the opportunity to succeed, especially those who depend on the state for care,” Green said in a statement. “By ensuring every eligible foster child has a funded investment account, we are giving these young people a stronger foundation as they enter adulthood.”

Freedman said the Stable Road Foundation is stepping in to cover ages 11 to 17, calling it the only group “no one else was covering,” and urged leaders in other states to follow Hawaiʻi’s approach.

Invest America Executive Director Matt Lira called the announcement a “watershed moment” for foster children in the state, saying it expands “hope and opportunity” by giving young people “a real stake in the upside of the American economy.”

At the federal launch of the program, First Lady Melania Trump said the accounts give foster children a chance for asset ownership and long-term wealth building, while Treasury Secretary Scott Bessent described the accounts as a major benefit for young people, according to the release.

State officials said the funded accounts can help support future goals such as education, homeownership, and entrepreneurship.