Bill to Conform State’s ScholarShare 529 Program with Federal Law Passes California Assembly

(SACRAMENTO, CA) – Today, the State Assembly passed Assemblymember Chris Ward’s (D-San Diego) Assembly Bill (AB) 340 unanimously.  The measure will amend California law to conform to federal law and permit taxpayers to benefit from the recently approved provisions in the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

“Through this action, Californians will be able to utilize their ScholarShare and 529 plans for expenses related to eligible apprenticeship programs and payments on qualified student loan debt,” said Assemblymember Ward.  “Given the impact that the COVID-19 pandemic has had on the economy, California families are looking for greater flexibility with their 529 savings to ensure a child’s access to higher education.”

California’s ScholarShare 529 is a versatile savings vehicle for families with traditional and non-traditional future post-secondary educational needs.  However, with financial insecurity being exacerbated by the pandemic, it is imperative that state law conform to federal law, ensuring California’s children have the tools needed for their educational future. 

“As Chair of the ScholarShare Investment Board, it is a top priority of mine to help families save for higher education and minimize the student loan debt crisis that has been exacerbated in recent years,” stated Treasurer Fiona Ma.  “AB 340 ensures whether our children aspire for 4 year degrees or want to start their careers through apprentice programs, their decisions will not be limited by antiquated savings structures”.

For questions on AB 340, or to schedule an interview with Assemblymember Ward, contact Ansermio Estrada.