DES MOINES, Iowa -- Gov. Chet Culver's (D) signature on Senate File 2430, commonly known as the Economic Stimulus Bill, is good news for Iowa credit unions.
Specifically, the legislation updates Iowa law on the regulation of individual development accounts and appropriates $150,000 to organizations that opt to implement an IDA program in the state. In addition, this legislation will allow IDA accounts for the purpose of purchasing assistive technology by persons with disabilities, such as wheelchairs, hearing aids or prosthetic devices.
The new law enables Iowa credit unions to continue serving working Iowans through the Credit Union Family Partnership Individual Development Account program, which was recently launched by the Iowa Credit Union Foundation. The foundation is one of many organizations that can apply to use these funds for their program.
"Through the Iowa Credit Union Foundation IDA program, Iowa credit unions are reaching out to low-income Iowans to help them save, and this legislation will further facilitate and expand our initiative," said Marybeth Foster, executive director of ICUF.
IDAs are savings accounts where the low-income participant's savings are matched dollar for dollar by grant funds from matching partners. These accounts traditionally can be used for the purchase of a first home, to start or expand a small business or toward education or job training costs.
This law, which was a result of the work by the bipartisan Successful Families Caucus and the Iowa Credit Union League, is designed to teach low-income Iowans the importance of savings in an effort to end poverty.