Individual Development Accounts
Issue Summary
In 2006, the legislature passed Think New Mexico's Family Opportunity Accounts Act, providing $1.5 million to support asset-building opportunities for low-income New Mexicans.
The Act was based on Think New Mexico's 2005 policy report, which outlined a strategy to move more New Mexicans out of poverty and into the middle class by encouraging low-income families to save for education, home-ownership, and starting micro-enterprises. Think New Mexico organized a diverse coalition in support of the legislation, and it passed the House 64-2 and the Senate 34-0.
The Family Opportunity Accounts Act, drafted by Think New Mexico, provides $1.5 million to support Individual Development Accounts targeted to families with children.
IDAs are interest-bearing bank savings accounts, in which every deposit an individual or family makes is matched with state and private dollars. The funds in the account are restricted for use in placing a down payment on a home, starting or expanding a micro-business, or paying for college or vocational education. In order to receive the matching funds, IDA account holders must successfully complete financial literacy classes, where they learn how to reduce debt, budget, manage a checking account, save, invest and avoid financial pitfalls like predatory lending.
IDAs help families develop the resources they need to move out of poverty for the long-term. Today, IDAs are available to fewer than 300 New Mexicans, although nearly 185,000 New Mexicans live below the federal poverty line.
Resources & Media
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Opening Your Own IDA |
Read Think New Mexico's policy report making the case for Individual Development Accounts
Coalition in Support of the Family Opportunity Accounts Act
Governor Bill Richardson endorsed the Family Opportunity Accounts Act in his 2006 State of the State speech on January 17, 2006 •
Governor Richardson signed the Family Opportunity Accounts Act March 8, 2006
Read Think New Mexico's opinion editorial making the case for the Family Opportunity Accounts Act • February 2006
Read Santa Fe New Mexican editorial endorsing Think New Mexico's IDA initiative • November 28, 2005
Read Rio Grande Sun editorial Think New Mexico's IDA initiative • November 10, 2005
Get Involved
Thank your Legislators
Many Think New Mexico supporters called and wrote to their legislators urging them to pass the Family Opportunity Accounts Act. This grassroots support was a big reason the bill passed with such wide bipartisan margins on both the House and Senate. Messages from constituents play a vital role in winning lasting policy reform. Click here to thank your legislators for expanding access to IDAs.
Vocal public support of proposals like IDAs is crucial to achieving policy reform. Legislators are attentive and responsive to letters to the editors from their constituents. We encourage you to express your support for IDAs through the media, as well as directly to your state senators and representatives. The Media section of Think New Mexico's Action Center provides the names and contact information for your local media, including newspapers, radio stations, and television stations, and you can compose and send any of them an email or letter right from there.
