HR0783 104TH GENERAL ASSEMBLY

HR0783 LRB104 21419 LAW 36439 r

HOUSE RESOLUTION

WHEREAS, 529 College Savings Plans are important tools for Illinois families who want to save for their children's college education; they offer a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, computer equipment, and required supplies; and

WHEREAS, The United States Congress enacted Section 529 of the Internal Revenue Code in 1996, which allowed states to create qualified tuition programs; and

WHEREAS, The Office of the State Treasurer serves as the trustee and administrator for Illinois 529 College Savings Plans; and

WHEREAS, The Bright Start and Bright Directions College Savings Plans were established in Illinois in 2000 and 2005, respectively, to assist Illinois families with financing the costs associated with a college education; and

WHEREAS, This year marks the 30th anniversary of the creation of 529 College Savings Plans in the United States and the 26th anniversary of the establishment of the Bright Start College Savings Plan in Illinois; and

WHEREAS, Today, more than 950,000 Bright Start and Bright Directions accounts have been created, and over $24 billion has been saved for higher education expenses; and

WHEREAS, The Bright Start and Bright Directions College Savings Plans have helped families meet their higher education goals with over $1.8 billion withdrawn annually for qualified higher education expenses at colleges and universities in Illinois and throughout the United States; and

WHEREAS, In 2025, Morningstar announced that the Bright Start 529 College Savings Plan earned a gold rating for the seventh time and the Bright Directions Advisor-Sold 529 College Savings Plan earned a bronze medal for the third time; and

WHEREAS, Through the Illinois First Steps program, all babies born or adopted after January 1, 2023 to a parent who is a resident of Illinois at the time of birth or adoption and time of claim, can receive a free $50 seed deposit when they open a Bright Start or Bright Directions account; and

WHEREAS, More than 24,000 college savings accounts have been started for young children with a one-time $50 seed deposit through the First Steps program; and

WHEREAS, According to the Federal Reserve Bank of New York, student loan debt has now reached $1.65 trillion nationally, which is more than triple the amount owed in 2005, and in Illinois alone, more than 1.6 million residents carry student load debt, with the average value being $39,310; and

WHEREAS, In Illinois, the dream of achieving academic and professional success is being threatened by increasing tuition rates and decreasing financial aid, and student load debt has been found to delay home purchases, business start-ups, and other major economic investments; and

WHEREAS, Illinois 529 College Savings Plans help families limit or prevent future student loan debt by helping them save for future higher education expenses; and

WHEREAS, The investments that families make today pay off in the form of an increased earning potential for their children in the future, with a college graduate earning an average of $1 million more than a high school graduate during his or her career, according to the United States Census Bureau; and

WHEREAS, May 29th is recognized nationally as 529 College Savings Day to help raise awareness across the country about the benefits of tax-advantaged college savings plans, known as 529 College Savings Plans, as important vehicles to save for college; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED FOURTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we declare May 29, 2026 as 529 College Savings Day in the State of Illinois to help raise awareness about the escalating costs of higher education and the importance of saving for college with the help of Illinois 529 College Savings Plans; and be it further

RESOLVED, That a suitable copy of this resolution be presented to the Office of the State Treasurer.