NYC to Provide $1,000 College Savings Accounts for All Public School Kindergartners

New York City has approved a landmark initiative that will provide a $1,000 college savings account for every public school kindergartner, creating what officials describe as the largest universal college savings program in the United States.

The program is included in the city’s Fiscal Year 2027 budget through a $53 million investment, significantly expanding the existing NYC Kids RISE initiative. Previously, the city contributed $100 to each student’s account.

Announcing the budget agreement, New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin said the initiative is designed to help families build wealth, increase access to higher education and improve future earning potential for students.

Under the program, kindergarten students will be automatically enrolled unless their parents choose to opt out. The funds will be deposited into a tax-advantaged 529 college savings plan, which can later be used for higher education expenses, including four-year universities, community colleges and vocational training programs.

Families, local businesses, community organizations and institutions will also be able to contribute additional funds through community scholarship initiatives.

While City Council members had sought a larger contribution of $3,000 for children from low-income families, the final budget agreement provides a uniform $1,000 contribution for all students regardless of household income.

Supporters of the initiative say research shows that access to post-secondary education significantly increases lifetime earnings and economic mobility. Officials believe the program will help reduce educational and income disparities across the city’s five boroughs.

The expanded college savings initiative is expected to benefit tens of thousands of students each year and represents one of the most significant education-focused investments included in New York City’s newly approved budget.