DES MOINES, Iowa — Gov. Chet Culver's (D) signature on SenateFile 2430, commonly known as the Economic Stimulus Bill, is goodnews for Iowa credit unions.

Specifically, the legislation updates Iowa law on the regulationof individual development accounts and appropriates $150,000 toorganizations that opt to implement an IDA program in the state. Inaddition, this legislation will allow IDA accounts for the purposeof purchasing assistive technology by persons with disabilities,such as wheelchairs, hearing aids or prosthetic devices.

The new law enables Iowa credit unions to continue servingworking Iowans through the Credit Union Family PartnershipIndividual Development Account program, which was recently launchedby the Iowa Credit Union Foundation. The foundation is one of manyorganizations that can apply to use these funds for theirprogram.

“Through the Iowa Credit Union Foundation IDA program, Iowacredit unions are reaching out to low-income Iowans to help themsave, and this legislation will further facilitate and expand ourinitiative,” said Marybeth Foster, executive director of ICUF.

IDAs are savings accounts where the low-income participant'ssavings are matched dollar for dollar by grant funds from matchingpartners. These accounts traditionally can be used for the purchaseof a first home, to start or expand a small business or towardeducation or job training costs.

This law, which was a result of the work by the bipartisanSuccessful Families Caucus and the Iowa Credit Union League, isdesigned to teach low-income Iowans the importance of savings in aneffort to end poverty.