Governor Polis Announces New Savings Opportunity for Colorado Foster Youth

DENVER - Today, Governor Jared Polis announced that Colorado will opt in to a new federal initiative allowing state child welfare agencies to open tax-advantaged savings and investment accounts for eligible children and youth in foster care. Colorado will work with the federal government, counties, and other partners to develop the best path to implement the accounts and help foster youth build assets for education, a first home, and a more financially secure future.

"Colorado should take advantage of every available dollar to help foster youth save for college, a first home, and a successful future. Every child deserves the freedom and opportunity to pursue their dreams, and these Fostering the Future accounts will give some of our highest needs young Coloradans an important head start toward financial independence," said Governor Polis.

In Colorado, approximately 3,700 Colorado children and youth are currently in out-of-home foster care. Colorado's participation will help ensure eligible foster youth have access to the same asset-building opportunities as children whose parents or guardians can already open accounts on their behalf.

The "Fostering the Future" initiative has received bipartisan commitments from governors across numerous states. The federal initiative allows state child welfare agencies to open and manage accounts for eligible children and youth in foster care, providing the same opportunity to build long-term savings that other children can receive through a parent or guardian. Eligible children must be under the age of 18 and have a valid Social Security number. Qualifying children born between January 1, 2025, and December 31, 2028 can receive an initial $1,000 contribution from the U.S. Department of the Treasury. Families, employers, businesses, and philanthropic organizations can make additional annual contributions up to $5,000 per account. Account funds are invested and can grow over time, with withdrawals starting at age 18 or for certain qualifying events like paying education expenses or purchasing a first home.

Private partners are also supporting this initiative. The Michael & Susan Dell Foundation has announced $250 contributions for eligible children age 10 and younger who do not qualify for the federal contribution. Micron has pledged a one-time $250 contribution for eligible children with accounts in Boulder and Weld counties.

The Colorado Department of Human Services will work with the U.S. Department of the Treasury, the federal Administration for Children and Families, counties, and other partners to address outstanding legal, administrative and operational requirements. Today's announcement represents Colorado's commitment to participate, and more information about implementation and enrollment will be shared as it becomes available.

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