Davids, Schmidt Introduce Bipartisan Bill to Help Kansas Families Build Financial Security for Children

WASHINGTON, D.C. — Today, U.S. Representatives Sharice Davids (D-KS-03) and Derek Schmidt (R-KS-02) introduced bipartisan legislation to help Kansas families save for their children’s futures. The bill would streamline how state agencies connect with new parents, ensuring families receive timely information on tax-favored savings and investment programs right when a child is born.

"As someone who worked my way through college, I know how life-changing it is when a family can start saving early for a child's future,” said Davids. “But right now, too many new parents miss out on savings programs simply because no one tells them that they exist. This bipartisan bill fixes that. By delivering clear, actionable information to parents the moment a child is born, Representative Schmidt and I are helping Kansas families build real financial security from day one."

“Every child deserves the opportunity to build a strong financial foundation, and parents should have clear information about the tools available to help them do that,” said Representative Derek Schmidt (R-KS-02). “The Born to Invest Act will help connect families with information about accounts that can help them save and invest for their children’s future, while giving states a practical framework for making that information available from the beginning of a child’s life.”

Federal law offers several tax-advantaged accounts to help families plan for higher education, disability-related expenses, and long-term financial security. However, because birth records are handled by state health departments while financial programs are run by state treasurers, a lack of inter-agency coordination leaves many new parents in the dark. Better alignment between these agencies ensures families receive this critical information right at birth, when starting a financial plan is most effective.

The Born to Invest Act addresses this communication gap by establishing a clear federal model for state agencies to safely coordinate birth notifications and deliver actionable financial guidance directly to families. Specifically, it amends the Internal Revenue Code to establish guidance that helps states:

• Educate Parents on Savings Options: Provide state treasurers with standardized frameworks to share information with parents and legal guardians on tax-advantaged accounts, including Section 530A Trump accounts, 529 college savings plans, and 529A ABLE accounts.
• Coordinate Inter-Agency Birth Data: Assist state treasurers and state health departments in establishing voluntary, secure information-sharing protocols regarding live births so state treasurers can proactively send financial literacy and account information to new parents.

Davids has consistently led bipartisan efforts to help Kansas families build long-term financial security. In addition to working to lower everyday costs across the board, she introduced bipartisan legislation alongside Senator Jerry Moran (R-KS) to expand tax-favored ABLE accounts, allowing employees with disabilities to receive employer contributions toward their future without risking their essential benefits. The Born to Invest Act directly builds on Davids' track record of delivering practical, bipartisan financial tools to help Kansans achieve lasting independence.

“Kansas has been leading the way in finding practical, innovative ways to make sure people with disabilities and their families know about and can access the financial tools available to them,” said Sara Hart Weir, Executive Director, Kansas Council on Developmental Disabilities. “Through our work at the Kansas Council on Developmental Disabilities alongside Kansas ABLE and our state partners, we have helped build a model that connects families early with information about ABLE accounts and other opportunities to save and invest for the future. I’m thrilled to see Congress, specifically Congressman Schmidt and Congresswoman Davids, take that Kansas-grown idea to the national level through the Born to Invest Act. By helping states connect families with information about ABLE accounts, Trump Accounts and 529 plans from the very beginning of a child’s life, this legislation can help ensure that children with disabilities are included in our country’s growing culture of saving, investing and building wealth. For too long, Americans with disabilities have been told what they cannot earn, save or own. This is about changing that trajectory from day one — and giving every child, including every child with a disability, a real opportunity to build a financially secure future.”

“Building a strong financial foundation early in life gives children greater confidence and opportunity as they grow,” said Steven Johnson, Kansas State Treasurer. “With several tax-advantaged savings options available, parents and caregivers have more ways than ever to help prepare their children for the future. Born to Invest is designed to help families understand these savings plans, learn about available financial incentives and recognize the important role investing can play in building long-term financial security. By providing this information early in a child’s life, we can help parents and caregivers choose the option that works best for their family and understand the lasting benefits of starting to save early. I appreciate the bipartisan leadership of Kansas Representatives Davids and Schmidt and their commitment to strengthening the financial well-being of families.”