The HOPE Program was created to address the wealth gap and disrupt cycles of intergenerational poverty by establishing long-term investment accounts for some of California’s most vulnerable children. The program supports youth who have experienced extended time in the foster care system, recognizing that many transition to adulthood without access to the financial safety nets or generational assets that support long-term stability and upward mobility. The program also extends eligibility to children who have lost a parent or guardian due to COVID-19 during the declared pandemic.
Research demonstrates that when young people know that financial assets are being held in their name, it can positively influence educational attainment, long-term planning, and financial behaviors. By establishing an investment account for eligible foster youth and eligible COVID bereaved youth, the HOPE Program provides both financial capital and a tangible signal of the State’s long-term commitment to their future success.
The California HOPE for Children Trust Account Program was established through Assembly Bill 156 (Chapter 569, Statutes of 2022) and is codified in Chapter 16.1 (commencing with Section 18997.5) of the Welfare and Institutions Code (HOPE Act).
The HOPE Act requires the HOPE Program Board of Directors (HOPE Board) to oversee and manage the program’s investments and governance. The HOPE Board advises the State Treasurer on enrollment and implementation data and reports to the Legislature on statutory and budgetary needs to ensure program sustainability and potential expansion to additional vulnerable populations.
