Pennsylvania is starting a program proposed by state Treasurer Joe Torsella to provide college savings accounts for newborns, beginning with a $100 grant.
Torsella said Monday the program will be open to any child starting next year who is a Pennsylvania resident at birth or adopted by a Pennsylvania family. Parents will be notified about the account set up for them.
Gov. Tom Wolf signed the program into law Friday.
It’s projected at a $14 million annual cost for an average of 140,000 births per year and Torsella says it can be financed by donations and surpluses in Pennsylvania’s existing college savings program.
The Treasury Department will invest the money and income it earns can be spent on a range of post-high-school education needs until the child reaches age 29.