Indiana recently received $1 million from the U.S. Department of Heath and Human Services to fund Individual Development Accounts which assist low-income Hoosier families who keep a savings account.
The grant will help support the efforts of State Senator Jean Breaux (D-Indianapolis) who authored Senate Enrolled Act (SEA) 389 to ensure that youth leaving the foster-care program are aware that the accounts are available to them. Caseworkers are currently required to provide children in foster care with information concerning Pell grants, Chafee grants, federal supplemental grants, the state student assistance commission and FAFSA. Effective Jul7 1, 2010, caseworkers of a foster child will also be required to provide information concerning individual development accounts to children in foster care and their foster parents. Learn more from Senator Breaux about SEA 389 >
For every dollar a participant deposits into their account, the federal government assists the state to match the amount to help families save money to buy a new home, receive higher education or training, or open a small business. Eligibility requirements are either a yearly household income below 175% of the federal poverty guideline at the time of enrollment, or a member of the household on TANF at the time of enrollment. Individual development accounts are managed by private, nonprofit community development corporations.