The CalKIDS program is a taxpayer funded scholarship program that encourages kids to start saving for college as soon as they're born. The program invests $1.9 billion into accounts for low-income children in grades 1-12 and for newborn children born on or after July 1 of this year.
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The seed investments grant every newborn up to $100 and between $500 and $1,500 for school-age children.
"California is telling our students that we believe they're college material - not only do we believe it, we'll invest in them directly," Newsom said in a statement. "With up to $1,500, we're transforming lives, generating college-going mindsets, and creating generational wealth for millions of Californians."
The tax-free money is invested in a mutual fund managed by ScholarShare, the state's college savings plan. Then it can be used for tuition and books.
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CalKIDS will send notification letters to qualifying children and families in the coming months, officials said. Click here to find out if you're eligible to receive the money.