CUNA Supports Plan To Give $500 ToNewborns

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WASHINGTON - (08/17/04) CUNA said it will put its supportbehind legislation that would deposit $500 into a special accountfor every child born after Dec. 31, 2005. The goal is to build asavings habit for every child from the time he or she is born.Funds in the American Saving for Personal Investment, retirementand Education (ASPIRE) Act, which would create the so-called KIDSAccount, could not be withdrawn until age 18. The bill is beingsponsored in the Senate by Sen. Rick Santorum (R-PA) and Sen. JonS. Corzine (D-NJ) and in the House by reps Pat Kennedy (R-RI), Rep.Harold Ford (D-TN), Tom Petri (R-WI), and Phil English (R-PA).CUNA's Leon Peace said he does not anticipate the bill will movethis year, but does expect it might see action in the next sessionof Congress. Estimates are the bill would cost $3.25 billion in itsfirst year and $37.5 billion over 10 years.

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