Every kindergartner entering a New York City public school will now receive $1,000 automatically deposited into a tax-advantaged college savings account, a tenfold increase from the program’s previous $100 contribution. The expansion, part of a fiscal year 2027 budget agreement between Mayor Zohran Mamdani and City Council Speaker Julie Menin, makes New York City’s Save for College Program the largest universal college savings initiative in the United States.
Key Takeaways
- NYC kindergartners will automatically receive $1,000 in 529 college savings accounts, up from $100, under the fiscal year 2027 budget deal
- City Council Speaker Julie Menin championed the $64 million expansion as a tool for addressing income inequality and boosting future wages
- The NYC Kids Rise Save for College Program, which began as a pilot in Queens in 2017, now covers all kindergarten through fourth-grade students citywide
- The budget also restores more than $26 million in education programs that were at risk of cuts, including school-based mental health clinics and a sensory disability program
- All students are eligible regardless of immigration status, and most charter schools have opted into the program
How Does The NYC Kids Rise College Savings Program Work?
The program operates through the nonprofit NYC Kids Rise, which manages scholarship accounts on behalf of participating students. Each account is invested in a New York 529 College Savings Direct Plan, a tax-advantaged account specifically designed for higher education expenses. The funds can cover tuition, fees, textbooks, equipment, and certain room-and-board costs at eligible institutions across the country and abroad, including four-year universities, community colleges, trade and vocational schools, and eligible apprenticeship programs.
Enrollment is automatic. Every kindergartner attending a New York City public school — including most charter schools that have opted into the program — receives an NYC Scholarship Account unless a parent or guardian actively chooses to opt out. Students must attend a participating school for at least 60 days to be enrolled. The program does not require a Social Security number or Individual Taxpayer Identification Number, meaning all students are eligible regardless of immigration status.
The NYC Kids Rise program launched as a pilot in 2017 within the boundaries of Community School District 30 in Queens, serving neighborhoods including Astoria, Long Island City, Jackson Heights, East Elmhurst, Corona, Sunnyside, and Woodside. The city expanded the program to all public school kindergartners starting in the 2021–22 school year as part of the Juneteenth Economic Justice Plan. As of the 2025–26 school year, all students in kindergarten through fourth grade are eligible. The tenfold increase to $1,000 per account will take effect under the new budget.
Beyond the initial city deposit, the program is designed to encourage additional family and community contributions. Families who open a connected savings account and link it to their child’s NYC Scholarship Account can unlock a $25 reward from NYC Kids Rise. A first deposit into that connected account triggers an additional $25 reward. Starting in first grade, NYC Kids Rise matches family deposits into the linked 529 account up to $100 per year. Local businesses and organizations can also contribute through community scholarships.
Students retain access to their scholarship funds even if they transfer to a private school, move out of New York City, or leave the public school system entirely. If a student does not claim the funds within 20 years of completing kindergarten, the money returns to NYC Kids Rise to support future participants.
Why Did City Council Prioritize This Expansion?
City Council Speaker Julie Menin made the college savings expansion a signature priority during budget negotiations, framing the program as a direct mechanism for reducing income inequality and increasing economic mobility. Menin cited research showing that individuals who complete postsecondary education earn nearly double the lifetime wages of those who stop at a high school diploma.
The research foundation supporting the program extends further. Studies on children’s savings accounts have found that a low-to-moderate-income child with even a small amount of savings — between $1 and $499 — is four times more likely to enroll in college than a child with no savings account at all. The theory is that the existence of a dedicated account shifts both parental expectations and children’s self-concept around college attendance, creating a psychological and financial on-ramp to higher education that begins years before an application is ever submitted.
The City Council had initially pushed for an even more ambitious structure, proposing $3,000 deposits for children from low-income families. That tiered approach did not make it into the final budget agreement. The adopted version provides a universal $1,000 deposit across all income levels, with the $64 million program cost representing one of the largest single education line items added during the Mamdani-Menin budget negotiations.
What Other Education Programs Were Restored In The Budget Deal?
The college savings expansion was not the only education victory in the budget agreement. Several programs that Mayor Zohran Mamdani had excluded from his preliminary budget proposal earlier in 2026 were restored after sustained pressure from advocacy organizations and City Council members. The Coalition for Equitable Education Funding, a group of more than 120 advocacy organizations, confirmed the following restorations and praised the administration and City Council for preserving services that affect thousands of students and families.
| Program | Funding Restored | Function |
|---|---|---|
| Sensory Exploration, Education & Discovery (SEED) | $8.4 million | Supports students with disabilities who have sensory issues interfering with learning |
| Restorative Justice | $6 million | Funds less punitive disciplinary approaches including peer mediation and circle discussions |
| Mental Health Continuum | $5 million | Operates mental health support at 50 schools including school-based clinics in the South Bronx and Brooklyn |
| Immigrant Family Outreach | $4 million | Funds communication with families in home languages, including translation services and ethnic media outreach |
| Student Success Centers | $3.3 million | Trains youth leaders to guide high school students through the college admissions process |
One significant unresolved question from the budget negotiations involves the fate of an $8.9 million contract with the nonprofit New Visions for Public Schools, which operates a data portal that consolidates information from multiple city databases into a single platform for school administrators. Educators and lawmakers have called the portal a critical time-saving tool, and its potential elimination drew pushback from school leaders across the system. The Mamdani administration had not confirmed as of the budget announcement whether the contract would be restored.
Where Does The Budget Deal Fit In NYC’s Broader Education Spending Picture?
The college savings expansion and program restorations are components of a larger $125.8 billion city budget that allocates a significant share of resources to education. The Mamdani administration continued the pandemic-era practice of shielding school budgets from enrollment-based cuts, committing $290 million to maintain funding at schools with declining student populations. The city also scaled back its timeline for complying with a state mandate to reduce class sizes after negotiating a deadline extension with Albany, reducing the immediate spending commitment from an initially proposed $543 million to a lower figure in the adopted plan.
The universal $1,000 deposit is a long-term bet that early financial infrastructure — a dedicated account, community reinforcement, and growing investment returns over 13-plus years of schooling — can shift postsecondary outcomes at scale in a system that serves approximately 912,000 students, making New York City’s approach to college savings a national test case for whether seed money at age five can reshape economic trajectories by age 18.
FAQs
How much will NYC kindergartners receive in their college savings accounts? Every kindergartner enrolled in a New York City public school or participating charter school will automatically receive $1,000 deposited into a 529 college savings account managed by the nonprofit NYC Kids Rise. The previous deposit amount was $100 per student. The funds are invested in a New York 529 College Savings Direct Plan and are expected to grow over time before students access them for higher education expenses.
Who is eligible for the NYC Kids Rise Save for College Program? All kindergarten through fourth-grade students enrolled in New York City public schools and participating charter schools are eligible. Students must attend a participating school for at least 60 days to be enrolled. The program does not require a Social Security number or tax identification number, meaning all students can participate regardless of their family’s immigration status. Enrollment is automatic unless a parent or guardian opts out during a designated opt-out window.
What can the college savings funds be used for? The 529 account funds can be used for qualified higher education expenses at eligible institutions in the United States and abroad. Covered expenses include tuition, fees, textbooks, equipment, and some room-and-board costs. Eligible institutions include four-year colleges and universities, community colleges, trade and vocational schools, eligible apprenticeship programs, and accredited online degree programs.
What happens if a student leaves the NYC public school system? Students retain access to their scholarship account funds even if they transfer to a private school, move out of New York City, or leave the public school system. However, students who leave will not be eligible to earn additional rewards or deposit-matching contributions from NYC Kids Rise. Funds must be used within 20 years of completing kindergarten; unclaimed funds return to NYC Kids Rise to support future participants.
Can families add money to the college savings accounts? Families can open a connected savings account and link it to their child’s NYC Scholarship Account. Doing so unlocks a $25 reward, and making a first deposit triggers an additional $25 reward. Starting in first grade, NYC Kids Rise matches family deposits up to $100 per year. Local businesses and community organizations can also contribute through community scholarship programs.
How much is the NYC Kids Rise expansion costing the city? City Council Speaker Julie Menin described the expansion as a $64 million initiative, making it the largest universal college savings program in the country. The program is funded through the city’s fiscal year 2027 budget, which was agreed upon by Mayor Zohran Mamdani and the City Council on June 30, 2026.
What education programs were restored in the NYC budget deal? The budget restores more than $26 million in education programs that were at risk of cuts, including the Sensory Exploration, Education and Discovery program for students with disabilities ($8.4 million), restorative justice initiatives ($6 million), the Mental Health Continuum providing school-based clinics ($5 million), immigrant family outreach ($4 million), and Student Success Centers for college guidance ($3.3 million).
Did the City Council get everything it wanted in the budget deal? The City Council initially proposed $3,000 deposits for children from low-income families, but the final agreement adopted a universal $1,000 deposit for all kindergartners regardless of income level. The tiered structure favoring low-income families did not make it into the final budget deal.
