Kansas Senate Bill SB281

Kansas 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/28/25
• Refer: 3/3/25
• Report Pass: 3/19/25
• Engrossed: 3/24/25
• Refer: 3/24/25

Caption

Substitute for SB 281 by Committee on Government Efficiency - Removing the treasurer's authority to accept and approve applications for the low-income family postsecondary savings accounts incentive program in 2028 and reducing the number of grants available and the number of audits required for such program.

Impact

The bill will amend existing statutes and create new structures within the Kansas treasury, particularly focusing on the management of education savings accounts. It will facilitate the establishment of dedicated trust funds for both the postsecondary education savings program and the ABLE savings program. This reallocation and creation of funds will ensure that the financial resources aimed at helping families with education costs are properly managed and allocated. The introduction of a matching grants system, where state funds will match contributions dollar-for-dollar up to certain limits, encourages participation and savings among eligible families.

Summary

Senate Bill 281 aims to establish the Kansas postsecondary education savings account and the Kansas ABLE savings account grant incentive program. This legislation is designed to provide financial support to families saving for higher education and disabilities through tax-advantaged savings methods. The newly created program will replace the existing low-income family postsecondary savings accounts incentive program, which had previously provided similar support. By introducing this new framework, the bill seeks to simplify and enhance the state's approach to educational savings, making it more beneficial for families in need.

Contention

One notable point of contention within the legislative discussions may revolve around the elimination of the previous low-income family postsecondary savings accounts incentive program. The move to a new structure could raise concerns among stakeholders who benefitted from the former program. Additionally, there may be debates around the adequacy of the matching grant limits and whether they sufficiently meet the needs of lower-income families who may still struggle to save for education despite these incentives. Discussions regarding the distribution of funds and the effectiveness of financial education requirements imposed on participants are also likely areas of contention.