Family Assets for Independence in MN (FAIM) & IDAs
FAIM (Family Assets for Independence in Minnesota) is an IDA match savings program for persons that are interested in (a) going to college; (b) purchasing a first home; or (c) starting a business. The program provides a $3.00 match for every $1.00 saved, so that after two years of contributing $40/month ($960), FAIM participants have saved/earned a total of $3,840 to put towards their goals
Eligibility for FAIM
--Be at least 18 years of age
--Have earned income at the time of enrollment
--Be a resident of Minnesota at time of participation in FAIM
--Have assets of $10,000 or less
--Deposit savings from earned income
--Have combined income at or below 200% of poverty (Participant's income and assets may increase after entrance into the FAIM program)
United Way has been involved in IDA's since 2005 and has seen great success. The individuals receive financial education and credit counseling throughout the 24-month enrollment. How can we increase the scale of this effort with limited funds from the state?
You could frame MN's current failure to leverage the program for maximum Federal match, as "Leaving money on the table that Minnesotans could use to further this our prosperity." In the short term Minnesota is missing an opportunity to help struggling MN families achieve their dreams of sufficiency; in the longer term, Minnesota is failing to do all it can to increase the tax base and our workforce competitiveness.
Governor Dayton’s budget has proposed eliminating funding for FAIM Grants. At the same time, it has been brought up that we are not using the full federal match available. If this is something pursuing, how can we make the case for maintaining or increasing funding in light of federal matches available?