A man experiencing homelessness walks by tents on the sidewalk in Skid Row during hot weather in Los Angeles on July 5, 2024.
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Etienne Laurent
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Reuters
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Topline:
Santa Monica College started the first community college program to train people for much-needed jobs in homeless services. But will its first cohort be its last?
Why it matters: With more than 187,000 people sleeping on California’s streets and in its shelters, the state’s homeless services industry is struggling to hire enough qualified workers to help them.
About the program: Last year, Santa Monica College heralded the state’s first-ever community college program aimed at training the next generation of homeless service workers. But the program has fallen victim to many of the same challenges that have long stymied progress on homelessness in California, including unreliable funding, high attrition rates and political turmoil. In fact, it’s not clear if the much-needed program will persist.
Read on... for obstacles students face during the program and for the jobs its training them to do.
With more than 187,000 people sleeping on California’s streets and in its shelters, the state’s homeless services industry is struggling to hire enough qualified workers to help them.
Last year, Santa Monica College set out to fix that: It heralded the state’s first-ever community college program aimed at training the next generation of homeless service workers. But the program has fallen victim to many of the same challenges that have long stymied progress on homelessness in California, including unreliable funding, high attrition rates and political turmoil.
In fact, it’s not clear if the much-needed program will persist.
“We know the value added when somebody is adequately trained before they’re deployed,” said Vanessa Rios, a senior advisor for workforce development with the Los Angeles Homeless Services Authority, which funds the community college program. “It would be a disservice to our system should we not fund and support this effort. Where the dollars (will) come from, I don’t know.”
It’s the front-line jobs, where staff interact face-to-face with unhoused clients, that often are the most difficult for agencies to fill or keep filled. That includes doing outreach in encampments, staffing homeless shelters, and working as a case manager trying to find permanent housing for clients.
More than 8,000 people worked in the homeless services sector in Los Angeles County in 2022, a report by consulting firm KPMG and United Way of Greater Los Angeles found. But the county still had more than 1,300 open positions and would need more than 2,200 workers on top of that — so, more than 11,500 altogether — to meet the needs of Los Angeles County’s homeless population.
Even compared to other major U.S. cities such as Atlanta, Chicago or Houston, homeless service workers in Los Angeles have a higher turnover rate, according to a more recent KPMG report.
It’s an issue all over the state. Most nonprofits that provide homeless services in California can’t help everyone who asks, in part because they struggle to recruit and retain staff, according to a 2024 study by the UC Berkeley Terner Center for Housing Innovation.
The new community college program was supposed to fill those holes by giving students the specific skills they need to succeed in homeless services. But amid perennial state budget uncertainty and questions about the region’s homeless services, Rios couldn’t say if her team will be able to fund another round of students at Santa Monica College.
The state’s Homeless Housing, Assistance and Prevention fund initially supported the program with roughly $750,000. That fund is the main source of flexible money that California cities and counties use to combat homelessness. Once the $750,000 runs out, it’s not clear whether it will be renewed. Gov. Gavin Newsom’s proposed budget, released in January, did not include any new money for Homeless Housing, Assistance and Prevention, although the Legislature could still add some.
That uncertainty is a major problem. For years, nonprofits, cities and counties have said a lack of consistent state funding hampers their ability to fight homelessness. While Newsom has poured billions into the cause, it has largely been in one-time grants — not the predictable, ongoing funding that service providers say they need in order to plan long-term programs.
At the same time, the agency that funds the community college program is in crisis. The Los Angeles Homeless Services Authority — a joint agency of the city and county of LA — has all but imploded. Earlier this month, the LA County Board of Supervisors voted to pull its money out of the joint agency, following a scathing audit of its work. Three days later, the head of the agency said she would resign. Now, the city is considering pulling out as well.
Santa Monica College in Santa Monica on April 16, 2025. Santa Monica College launched a new Homeless Service Work Certificate Program last year in partnership with Los Angeles Homeless Services Authority.
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Alisha Jucevic
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CalMatters
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“We’re hopeful that we’re able to secure funding in the future,” said Patricia Ramos, dean of academic affairs for Santa Monica College. “But nothing is guaranteed.”
Rios said her team is looking for additional money to support the college program, including from the state and philanthropic partners. If the community college program does continue, it wouldn't accept another class of students until spring of 2026.
‘Can I do this?’
When Tamyra Simpson saw a LinkedIn advertisement about the Santa Monica College program, she thought it was “too good to be true.”
Growing up, her grandmother, a substance use counselor, would pick up Simpson at her childhood home in Pasadena and travel to Skid Row in downtown Los Angeles, where they’d serve food to homeless people on Thanksgiving.
“The women in my family, they’ve always been service-oriented,” she said.
Simpson works as a nanny in the wealthy Los Feliz neighborhood near downtown Los Angeles, but said her goal is to eventually work in homeless services.
She was one of about 70 people who applied for admission into the inaugural Santa Monica College homelessness services program, and one of just 27 students who were ultimately selected, said Steven Sedky, who oversees the program. Students take multiple courses over the span of two semesters, where they learn about the history of homeless services, effective practices to help homeless clients, and even strategies to avoid burnout. The program culminates in a paid internship at a relevant nonprofit or agency in Los Angeles County.
Tamyra Simpson at Santa Monica College in Santa Monica on April 16, 2025. Simpson is part of a new Homeless Service Work Certificate Program launched at Santa Monica College last year in partnership with Los Angeles Homeless Services Authority.
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Alisha Jucevic
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CalMatters
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Only about half of the students are left, Sedky said — an attrition rate “much higher than we initially anticipated.”
Students dropped out for a variety of reasons, he said. One student lost housing, while other students struggled with the commute to class, which includes in-person meetings on Wednesdays.
On Wednesday mornings, Simpson starts her nanny job at 7 am. Then, around 8 am, she begins the hour drive to Santa Monica. If traffic is bad, it can take up to an hour and a half. After class, a little after noon, she drives back to Los Feliz and works another five hours as a nanny.
“I really ask myself, ‘Can I do this?’” she said. “But there’s so much value in this program, this experience. I don’t think I would have changed anything if I could.”
After she graduates in June, she’ll face a job market rife with its own challenges. An entry-level position at LA-based homeless services nonprofit The People Concern, for example, typically pays between $21 and $25 an hour, said CEO John Maceri. Simpson said she makes about twice that much working as a nanny.
“LA is an expensive place to live,” Maceri said. “It’s hard to survive.”
“This sector does not pay livable wages unless you’re in senior management,” said Celina Alvarez, executive director of Housing Works. She helped create the Santa Monica College program and teaches a class there. “We’ve got to do better by (the workers). They are first responders. They don’t even have access to mental health support, considering they experience and witness a tremendous amount of human suffering on a daily basis.”
Alvarez said between 10 and 15 of the 73 total jobs at her organization are vacant.
At The People Concern, which will host two Santa Monica College students as interns, about 85 jobs are open — about 10% of their total positions. Once the interns complete the program, Maceri said his organization would be happy to hire them.
“The quality of the work is only as good as the quality of the people doing the work,” he said. “And we need more folks in the homelessness response system workforce.”
A difficult job
Low pay isn’t the only thing that makes people wary of jumping into a career in homeless services. The work is extremely grueling and difficult. Burnout is common. A lack of resources makes everything worse. Workers can try their best to help someone, but if there are no shelter beds or housing available, they can’t do much. That can be very frustrating, Maceri said.
“Sometimes people have a fantasy of what the work is like, and then get into it and realize ‘Oh, this is different than what I thought,’” he said. “I think most people want to help, but the intensity of the work day in and day out is a lot to handle.”
A lack of adequate training makes it even harder, as workers may not know how to respond to the specific challenges they encounter in the field. Alvarez gave an example of a newly hired case manager at her organization: The case manager went to a client’s house to pick up the client for a psychiatric appointment. Before they left, the client injected themself with an unknown substance. The big-hearted case manager didn’t know what the client had injected but took them to their appointment anyway — a dangerous move that could have ended with the client becoming aggressive or even overdosing in the caseworker’s car, Alvarez said.
Existing degree programs don’t train workers for the realities of what they’ll face in the field, such as navigating the bureaucracy of hospitals and nursing homes, or how to reunite a homeless individual with family, Rios said.
The program also tries to prepare students for burnout, by providing counselors who debrief with students after they go out in the field, and teach them techniques to cope with what they see.
Loma Linda University campus on April 22, 2024.
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Jules Hotz
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CalMatters
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But there are some intractable problems this training program can’t fix.
For social workers, who have a master’s degree, it’s more lucrative to work as a therapist in private practice. Even other low-paying industries, such as child welfare, offer special grants or fellowships. In Los Angeles, the county’s decision to gut the Los Angeles Homeless Services Authority makes it even harder for graduates to imagine this industry as a stable career choice.
Still, as a current student, Simpson is hopeful that the community college program will continue.
“As an inaugural cohort, there are going to be missteps. We’re essentially the guinea pigs,” she said. “At its core, it’s an incredible opportunity.”
She said she’s well-aware of the pay cut that an entry-level job in homeless services might require, and that she’s willing to keep her full-time nanny position as long as it takes to find other work.
Given the number of job vacancies, it’s unlikely that she’ll wait very long.
Mariana Dale
is proud of her distant Norwegian heritage and excited to cheer on the team in the quarter-final.
Published July 8, 2026 5:12 PM
Fans cheer during the World Cup round of 16 soccer match between Brazil and Norway in East Rutherford, N.J.
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Pamela Smith
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AP
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Topline:
Norway’s historic World Cup performance has brought together Southern California’s relatively small, but spirited Norwegian community.
Why now: They’ve been packing into a San Pedro Church, a Westside Irish bar and have taught people to row like a Viking at watch parties throughout the region, after Norway qualified this year for the World Cup for the first time since 1998.
Norwegian pride: Vilde Vevatne, who was born and raised in Oslo but now lives in L.A., said she’s proud of the team’s performance on the pitch but also their attitude outside of the matches. “ How kind and humble the team are being. … They're not bragging unnecessarily,” Vevatne said. “They're genuinely just excited to be there. They're doing their best job and not thinking they're better than anyone else.”
What's next: Saturday’s quarterfinal game between Norway and England in Miami is scheduled to start at 2 p.m.
Norway’s historic World Cup performance has brought together Southern California’s relatively small, but spirited Norwegian community.
They’ve been packing into a San Pedro Church, a Westside Irish bar and have taught people to row like a Viking at watch parties throughout the region, after Norway qualified this year for the World Cup for the first time since 1998.
Several Norway soccer watch parties, including the one at Joxer Daly's in Culver City, promise waffles.
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Courtesy Elise Maeland
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“This whole experience also just reminded me of why I'm proud of being Norwegian and all of these values that the society and my parents instilled upon me from a young age,” said Vilde Vevatne, who was born and raised in Oslo, but now lives in L.A.
She’s proud of the team’s performance on the pitch, but also their attitude outside of the matches.
“ How kind and humble the team are being … They're not bragging unnecessarily,” Vevatne said. “They're genuinely just excited to be there. They're doing their best job and not thinking they're better than anyone else.”
Vevatne says it’s the embodiment of the Law of Jante.
“That's like an unwritten rule in Norwegian culture where we're taught from a young age ‘Don't think you're special. Don't think you're better than everyone else,’” Vevatne said. “Just be part of the pack and just be a nice, genuine person."
Norway's Erling Haaland has scored seven goals in the World Cup as of July 8. “ I think he has just exploded as a superstar coming out of the game,” said Erik Steigen.
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Image Photo Agency
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Getty Images
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And now SoCal’s Nordic community has an open invitation for anyone looking for a team to support during the quarter-finals.
Row with us. (The practice of imitating a Viking longboat of warriors rowing into battle started within the last year, but quickly became a viral phenomenon.)
“ We're a small country. We need every fan we can have,” said Petter Isaksen, who helped organize the watch parties at the Norwegian Seaman’s Church in San Pedro.
“Now there are almost no Norwegian sailors left, but there's still a lot of Norwegians in L.A. and in SoCal,” Isaksen, who works as a host at the church, said. “We're there for them as a church and as a cultural center,”
The church hosts groups for toddlers, knitting and Norwegian language classes in addition to a Sunday Lutheran service that welcomes all faiths.
And five days a week, there are waffles for sale— always heart-shaped and with your choice of goat cheese, jam or sour cream.
“We can eat several,” Isaksen said.
The Seaman's Church in San Pedro has long been a gathering place for Southern California Norwegians and has hosted watch parties since the World Cup qualifying matches.
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Courtesy Petter Isaksen
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Isaksen has followed Norway’s football team “since I was born,” and started organizing the watch parties at the church during the qualifying matches.
He said dozens of people, including several new to the church, have attended each watch party for communal singing, waffle-eating and rowing.
“Everyone, whether they're, like, 12 weeks or 99-years-old, they're in on it,” Isaksen said. “It's so much fun, and it brings so much togetherness.”
Cathrine Chiaro, left, and Petter Isaksen, right, both work at the Norwegian Seaman's Church in San Pedro.
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Courtesy Petter Isaksen
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‘Where are all the Norwegians at?’
A Culver City Irish sports bar has become another bastion of Norwegian pride during the World Cup thanks to Erik Steigen.
When he first moved to Los Angeles 30 years ago to work in the music industry, he didn’t prioritize seeking out his countrymen.
“I'm not moving to the US… to hang out with Norwegians and eat lutefisk,” Steigen said, referencing the divisive dried, lye-soaked fish. “I'm here to try to build a career and pursue my own dreams.”
But that changed about a decade ago.
Petter Wichman, right, and his son Erik, left. During the knockout game against Brazil, they lead the whole bar in a session of rowing, despite the fact that most people were cheering for their opponents.
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Courtesy of Petter Wichman
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“I started wondering, ‘Where are all the Norwegians at?’” Steigen said. He joined the board of the Seaman’s Church in San Pedro and today helps organize events through Peer Gynt LA, a cultural group that evolved from an early 20th century chapter of the Sons of Norway lodge.
“When you're from a different country — I've spent most of my life in the U.S. now — I think you become extra patriotic about your native country,” Steigen said.
So why organize a watch party at an Irish sports bar?
Steigen is a lifelong soccer fan, but when he first arrived in the U.S., the national team’s games didn’t broadcast in the states. So he adopted the Liverpool Football Club and often catches the games at Joxer Daly's in Culver City.
When people asked him where to watch Norway play, he defaulted to his home bar.
Steigen wasn’t sure if anyone would show up to watch Norway take on Iraq in their first match, but dozens did — and Norway won 4-1.
“ It's amazing how many Norwegians really exist in L.A. that you've never heard of,” Steigen said.
From left, Erik Steigen, Finn "The Viking" Orvin and Henning Gabrielsen are among the many Norway fans that have watched the matches at Joxer Daly's in Culver City.
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Courtesy Erik Steigen
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Elise Maeland, has attended several of the matches at Joxer Daly’s.
She’s made a handful of Norwegian friends since moving to Southern California more than a decade ago for grad school, but outside of May 17, Norway’s Constitution Day, she said there are few large Norwegian gatherings.
“I feel like that was what was really cool about the World Cup is that it really brought Norwegians together in L.A.,” Maeland said.
She hasn’t decided whether she’ll watch Saturday’s quarter-final at Joxer Daly’s or join a larger watch party in Venice Beach.
“ I'll go where the most Norwegians go,” Maeland said.
Where to watch the game
Saturday’s quarter-final game between Norway and England in Miami is scheduled to start at 2 p.m. local time.
The Seaman’s Church / Sjømannskirken
Address:1035 South Beacon St. San Pedro Watch party: 11 a.m. - 4 p.m. More information:Website, Facebook Good to know: This family friendly watch party promises waffles, hot dogs, popcorn and a bouncy castle for the kids. In addition to Sunday services, the church also runs a Norwegian goods shop — and sells waffles — Wednesday through Sunday.
Joxer Daly's
Address:11168 Washington Blvd. Culver City Watch party: noon - until the match is over. More information:Facebook, Peer Gynt LA website (organizers) Good to know: There will be waffles starting at noon and organizer Erik Steigen recommends arriving early to snag a seat.
Los Angeles World Cup 26 Fan Zone at Venice Beach
Address:1 Windward Ave Watch party: noon - 10 p.m. More information:Website, Facebook Good to know: This event has both free and premium tickets that include a reserved viewing area, food and drinks.
Makenna Cramer
covers the daily drumbeat of Southern California — events, processes and nuances making it a unique place to call home.
Published July 8, 2026 4:50 PM
People standing in line at the Tom Bradley International Terminal at LAX.
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Yusra Farzan
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LAist
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Topline:
L.A. County has confirmed another case of measles in a traveler passing through LAX and at least one other public place July 3, public health officials announced Wednesday. They’re urging people to take precautions against the highly contagious virus.
What you should know: According to the L.A. County Department of Public Health, the infected traveler arrived on British Airways Flight 281 at Gate 155 in the Tom Bradley International Terminal B on July 3. People who were at the gate between 3 p.m. and 4 p.m. may have been exposed.
Potential exposure extended to an LAX Hertz Car Rental Shuttle the same day, as well as a healthcare facility. Anyone at the shuttle from 3:30 p.m. to 4:30 p.m. may be at risk of getting measles. Public health officials did not share dates, times or other details from the affected healthcare facility.
What if I was on the flight? Passengers who were sitting near the traveler will be notified by their local health departments. The CDC and local departments regularly work together for these kinds of exposures on international flights, according to L.A. County officials.
What if I was exposed elsewhere? People who were at the rental shuttle during that time period could be at risk of developing measles. The healthcare facility is directly reaching out to patients and staff, and the Department of Public Health said it's looking into any other potential exposure locations in L.A. County.
What to watch out for: Symptoms including a fever, cough, runny nose, red eyes and a rash can show up a week to three weeks after exposure. Public health officials emphasized that if you start to show these symptoms, don't just walk into a healthcare center without calling ahead first.
The last day to monitor for symptoms from the airport terminal and rental shuttle is July 24.
How to help protect yourself: The best way to protect yourself and your family is with the measles-mumps-rubella (MMR) vaccine — so double-check your medical records. You can find more measles information from L.A. County here.
If you're enjoying this article, you'll love our daily newsletter, The LA Report. Each weekday, catch up on the 5 most pressing stories to start your morning in 3 minutes or less.
Cato Hernández
scours through tons of archives to understand how our region became the way it is today.
Published July 8, 2026 4:23 PM
The sterile moquitoes will be released over 16 weeks.
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Courtesy San Gabriel Valley Mosquito and Vector Control District
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Topline:
The San Gabriel Valley Mosquito and Vector Control District is releasing more than 480,000 mosquitoes over the next few months in an attempt to squash the local mosquito population.
Why now: Aedes aegypti mosquitoes are the culprits behind all those ankle bites. The peak of the season starts in August for the valley, lasting all the way to October (and sometimes even longer).
How it works: The district is releasing only non-biting sterile male mosquitoes. When they mate, the females don’t produce viable offspring, which will hopefully thwart the season's peak. It's a technique that's been used to some success by Riverside County.
Where is this happening? They'll be released into the unincorporated area of Basset, near Baldwin Park, which has historically seen high mosquito activity.
Read on … to learn about what you can expect.
The San Gabriel Valley is heading into peak mosquito season. If a new program goes well, there'll be even more of the pesky fliers than normal — and that's a good thing.
The San Gabriel Valley Mosquito and Vector Control District is releasing more than 480,000 mosquitoes over the next few months, with an aim to squash the invasive ankle-biters known as Aedes aegypti mosquitoes.
What’s happening
The San Gabriel Valley is one of the L.A. County areas that regularly get a lot of mosquitoes, but every season can be different. As well as being a major outdoor annoyance, Aedes aegypti is the primary carrier of dengue, and while local transmission is historically very low, the species is tough to kill off because their eggs can survive in tiny amounts of water.
That’s why the district is using a technique that introduces sterile insects into the mix. The mosquitoes they’re releasing between now and October are males that carry Wolbachia, a naturally occurring bacteria that makes them unable to have offspring with wild females.
Male mosquitoes don’t bite, so while residents may see more of them, they won’t leave a trail of those itchy bumps.
It’s a technique that’s been used elsewhere in SoCal, including San Bernardino County, with some success.
(Courtesy the San Gabriel Valley Mosquito and Vector Control District)
They’re going to the unincorporated community of Basset, just south of Baldwin Park, because it historically sees more activity. The area averaged more mosquitoes per trap than the district’s service area between 2020 and 2025, according to Anais Medina Diaz, communications director for the district.
Over 16 weeks, these urban bloodsuckers will be released from cardboard tubes in a 25-acre area between the intersections of East Temple Avenue, Millbury Avenue, Moccasin Street and Vineland Avenue.
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Courtesy the San Gabriel Valley Mosquito and Vector Control District
)
They likely won’t travel much farther beyond that. Aedes aegypti populations are known for being short-distance flyers, covering about a tenth of a mile in their lifetime.
Why now?
Mosquitoes are becoming a year-around problem for Southern California, but there are still peaks to the season.
For the San Gabriel Valley, Medina Diaz said the higher Aedes activity happens between August and October.
The district’s program is also lasting longer than other programs in L.A. County for a specific reason. They want to increase the chances for sterile males to mate with wild females, which can live up to two months, according to the district.
By stopping new female Aedes aegypti mosquitoes from being born, Medina Diaz said they hope residents won’t have to deal with as many bites.
Americans have a new way to invest in their kids' futures: Trump Accounts launched over the weekend. Congress approved them last year as part of the One Big Beautiful Bill Act.
Who qualifies: If you have a child born between 2025 and the end of 2028, financial advisors say signing up for a Trump Account should be a simple decision for one reason: The child's account will automatically get a $1,000 seed contribution from the federal government. The money in these accounts will be invested in an index fund that broadly tracks the stock market. Any American citizen under age 18 can have an account, and once they turn 18, they can access that money for things like education or buying a house.
Kids born before that window aren't completely out of luck: Millions of children under age 11 will still get $250. That comes from more than $6.25 billion donated by Michael and Susan Dell of Dell Technologies. That money will only go to children who don't qualify for the federal contribution. To qualify, their families must also live in zip codes where the median family income is under $150,000.
Read on... for other things to consider when planning to save for your children.
Americans have a new way to invest in their kids' futures: Trump Accounts launched over the weekend. Congress approved them last year as part of the One Big Beautiful Bill Act, Republicans' tax and spending law. They function similarly to retirement accounts, but instead of being for adults preparing for their senior years, they're for assisting kids with the start of their adult lives.
The money in these accounts will be invested in an index fund that broadly tracks the stock market. Any American citizen under age 18 can have an account, and once they turn 18, they can access that money for things like education or buying a house. (The money can also be used for other purchases, but that comes with a tax penalty.)
The accounts function as a kind of digital "donation bucket" that many people can contribute to — kids' families, but also philanthropists, their parents' employers, and even the government. Contributions from family and other adults in the children's lives are made in after-tax dollars; contributions from others, such as employers or the government, are pre-tax. The child will only pay tax on the investment's growth once they withdraw the funding.
But there are already plenty of other options for parents to invest in, from education saving plans to their own retirement accounts. So should you sign up your family for Trump accounts? Here are four things to consider.
Your child could get free money from the federal government
If you have a child born between 2025 and the end of 2028, financial advisors say signing up for a Trump Account should be a simple decision for one reason: The child's account will automatically get a $1,000 seed contribution from the federal government.
Financial planner Michael Reynolds with Indiana's Elevation Financial did the math for Morning Edition and said that, even without any additional investments, that $1,000 would become almost $4,000 by the time a kid turns 18. (That's assuming an 8% rate of return and doesn't count the income tax that has to be paid on the growth and initial federal contribution.)
Your kid might be eligible for other donations
Kids born before that window are not completely out of luck. Millions of them under age 11 will still get $250. That comes from more than $6.25 billion donated by Michael and Susan Dell of Dell Technologies.
That money will only go to children who don't qualify for the federal contribution. To qualify, their families must also live in zip codes where the median family income is under $150,000.
And if your children don't qualify for the Dell donation, there are other options that could come your way.
Some companies are also offering contributions, like the memory chip maker Micron. It's giving $250 to up to a million children living near some of its worksites in states like Minnesota, California and New York, as a way to support the local workforce and community. Micron will also match employee donations to their own children's accounts, up to $1,000 per kid.
Other companies, including Mastercard, Uber and Visa, are also offering matches to employees.
That includes some small businesses, too. "We're going to try it out," said Luke Delorme, co-owner and director of financial planning at the finance firm Tableaux Wealth. "Maybe it'll fit into their financial picture in the future in some meaningful way."
Consider your own retirement funding first
Parents should also prioritize their own retirement before putting money away for their kids' retirement, said Carrie Joy Grimes, CEO of the nonprofit personal finance company WorkMoney.
She suggests parents max out their own retirement accounts before other options, "because what happens is we put money into our kids' stuff, and then we end up needing help in retirement — and that is a way worse financial stress on our kids."
Your kids may also benefit from a 529 education plan
Parents can already choose to invest for their children's futures through 529 savings plans. As with Trump accounts, family members can contribute to these plans with post-tax dollars.But there are differences. First, 529 plans allow kids to withdraw the money tax-free. And second, that money can only be used for education.
Parents can opt for both. Financial advisors say how families can benefit from Trump Accounts will depend on their financial situation. For wealthier families with parents who can already afford to max out their retirement accounts and put aside money in a 529, Trump Accounts are essentially an extra tax benefit for their kids.
Ray Boshara, a senior policy advisor at the Aspen Institute, says that lower-income families will primarily benefit from having that digital donation bucket that can accrue contributions for their kids. Those children might be able to start their adult lives with thousands of dollars they otherwise wouldn't have had.
"These accounts will be transformative for them," Boshara says.
Note: Dell Technologies is a financial supporter of NPR.
