Up To $1,175 In Free Scholarship Money Awaits Each Riverside County Baby

RIVERSIDE COUNTY, CA — Families welcoming a new baby in Riverside County have scholarship money waiting for their little ones as part of the California Kids Investment and Development Savings Program (CalKIDS). Separately, the federal government has also promised college dollars for newborns.

What to know about the state money

CalKIDS is touted as the nation’s largest child development account program, providing scholarships for higher education. Administered by the ScholarShare Investment Board and chaired by California State Treasurer Fiona Ma, CPA, the program is designed to promote the pursuit of higher education statewide by helping families to build assets.

Every child born in the state on or after July 1, 2022, automatically has a CalKIDS Scholarship Account waiting in their name — including more than $4 million in scholarship funds set aside for children in Riverside County alone, according to CalKIDS.

For these children, the state invests up to $175 in a CalKIDS Scholarship Account:
● $100 for being born in California (babies born July 1, 2023, or later; $25 for those born
between July 1, 2022, and June 30, 2023)
● $25 extra when parents claim the account online
● $50 extra for linking the account to a ScholarShare 529 College Savings Plan

A ScholarShare 529 Account is a flexible and tax-advantaged savings plan for your child's higher education. Although contributions are not deductible on federal tax returns, any investment earnings can grow 100% tax-deferred with tax-free withdrawals when used for qualified higher educational purposes

United Ways of California is a CalKIDS supporter.

"Every child deserves the chance to dream big, and that starts from the moment they are born," said Mandy Nand, associate director of economic mobility, United Ways of California. "CalKIDS is helping families of newborns begin saving for education and career training right away. United Ways of California is proud to support this effort, which aligns with our work to expand economic mobility and opportunity across the state."

To claim your baby's scholarship money, visit CalKIDS.org. Parents and guardians just need three pieces of information:

● The county where their child was born
● Their child’s date of birth
● The 13-digit Local Registration Number (LRN) on the birth certificate, or the unique
CalKIDS code mailed to their home

Once claimed, families can log in anytime to view balances, link a ScholarShare 529 Account, and learn how funds can be used. Eligible expenses include tuition and fees, required books and supplies, and computer equipment at accredited higher education institutions nationwide.

According to CalKIDS, research shows that children with even small savings for higher education are three times more likely to attend college and four times more likely to graduate. Education is also one of the most powerful tools to break the cycle of poverty — a college degree can nearly double lifetime earnings, the organization reports.

What to know about the federal dollars

Federal money also awaits families with newborns. President Trump's One Big Beautiful Bill Act, signed into law over the summer, created a new type of child savings, "Trump Accounts," with a temporary program of $1,000 payments for each child born during Trump’s second presidential term.

Trump Accounts also allow parents and employers to contribute up to $5,000 per year (indexed for inflation) to individual retirement accounts on behalf of children under the age of 18, regardless of their parents’ income. While the contributions are not tax-deductible, taxes on investment earnings are deferred but taxed as ordinary income upon withdrawal.

Unlike the CalKIDS program, the Trump Accounts' rollout is pending.

"The current target for [the government] to open accounts and make the $1,000 contribution for eligible beneficiaries is July 2026," according to Adam Frank, Head of Wealth Planning and Advice at J.P. Morgan Wealth Management. "Parents/guardians cannot currently go to a bank or investment firm and open this kind of account.

"It isn’t clear how accounts will be opened for eligible children under 18 who were born before 2025. We expect that further guidance will be issued by the Treasury Department in the coming months," Frank said.