West Virginia House Bill HB3414

West Virginia 2025 Regular Session

• Introduced: 3/17/25
• Refer: 3/17/25

Caption

To automatically start a Smart 529 account for every newborn in West Virginia.

Summary

HB3414 would create the Mountaineer Scholars Grant Program within West Virginia’s College Savings Program and direct the State Treasurer to open a $100 scholarship grant for each eligible child born in the state after December 31, 2024. The bill is designed to encourage early participation in postsecondary savings by automatically linking newborns to a qualified higher education savings account framework, while allowing parents or guardians to opt out. Under the bill, the Department of Human Services would be required to send birth and guardian information to the Treasurer within 90 days of birth so the program can be administered and families notified. The Treasurer would then place the $100 grant, plus any investment earnings, into a separate account within the Savings Plan Trust Fund Account for use only on qualified higher education expenses at eligible institutions. The bill also allows private contributions to the account and requires the Treasurer to provide secure online access to account balances for parents or guardians.

Impact

The bill would add a new article to the West Virginia Code establishing a new state-administered college savings grant program and creating a dedicated account structure within the existing 529-style savings framework. It would impose new administrative duties on the Department of Human Services and the State Treasurer, including data sharing, eligibility verification, parent notification, opt-out processing, confidentiality protections, and account administration. The measure would affect newborn children in West Virginia, their parents or guardians, and the state agencies responsible for birth records and college savings oversight.

Sentiment

The available context suggests the bill was introduced as a broadly positive, family- and education-oriented measure, with its stated purpose being to help every newborn begin a college savings account. The caption frames it as automatically starting a Smart 529 account for every newborn, which indicates an emphasis on universal access and early educational planning. No committee transcripts or recorded votes were provided, so there is no evidence of formal opposition or support beyond the bill’s stated intent.

Contention

The main points of potential contention are administrative and privacy-related rather than ideological: the bill requires the Department of Human Services to transmit newborn and guardian information to the Treasurer, which could raise concerns about data sharing, confidentiality, and government handling of personal information. Another possible issue is the automatic nature of the program, since families must affirmatively opt out if they do not want the account established. Fiscal concerns may also arise because the program creates an ongoing state obligation to fund $100 grants for each eligible birth and to cover administrative costs.