Senator Eldridge Secures $250,000 to MIDAS for Matched-Savings Programs
MIDAS is a statewide non-profit organization dedicated to establishing matched-savings programs throughout Massachusetts
Senator Jamie Eldridge (D-Acton) secured $250,000 for MIDAS Collaborative, Inc. as a fiscal intermediary for matched-savings programs, which help to close critical racial and other wealth gaps of low-to-moderate-income households, in partnership with financial institutions, community development corporations, community foundations, and other community-based organizations.
Matched-savings programs allow low-to-moderate-income families to save for college expenses, buying a house or starting a business, among other defined goals. The participant contributes some of their own funds and then those contributions are matched by MIDAS with funding from the Commonwealth secured through the funding Senator Eldridge secured.
Last month, the Massachusetts State Senate passed a $49.78 billion budget for Fiscal Year 2023 (FY23). With unanimous support, the budget makes significant, critical and targeted investments in the areas of education, healthcare, housing and community support to meet the on-the-ground challenges brought on by the global pandemic and ongoing financial uncertainty.
MIDAS will continue using these critical funds to strengthen existing matched-savings programs throughout the Commonwealth that are funded through philanthropic funds provided by the community organizations. Senator Eldridge’s familiarity with MIDAS started when he was first elected to the legislature, when he served as co-chair of the Asset Development Commission (ADC).
In a 2009 report from the ADC, the commission stated that families need both income and assets to be economically secure. “While income is what families use to cover daily living expenses, assets are what families use to move ahead directly and develop knowledge, skills, social networks, and community.”
Many of ADC’s recommendations have become law, including requiring financial literacy in public schools, eliminating asset limits for public benefits, expanding Earned Income Tax Credit (EITC), and establishing matched-savings programs for residents in Massachusetts.
“Asset holding increases household stability by providing a cushion in times of need,” the ADC report stated. “Helping individuals avoid eviction, hunger, loss of utilities, loss of social networks through moves, or increasing debt.”
“I am very proud that over the past 10 years, MIDAS has been working tirelessly to fill the wide gap of difference between being Black and Latino in the Commonwealth and being White. This amendment to MIDAS is critical for financial and asset security,” said State Senator Jamie Eldridge (D-Acton). “I am grateful for MIDAS, an organization that works every day to combat racial disparities. It is imperative that we strengthen matched-savings programs in Massachusetts.”
“Matched savings programs offer hardworking families access to wealth building opportunities, such as buying a home, getting a college degree, or starting a small business, by matching a household's savings with those provided by benevolent funders; with a 1:1, 2:1 or higher match. With matched savings, more people, especially those affected by the racial wealth gap, can achieve economic prosperity,” said Molly Goodman, Executive Director of The Midas Collaborative. “We are grateful to the Legislature, and especially Senator Eldridge and all the senators that co-sponsored this amendment, for their support of Midas and hardworking families across the Commonwealth,”
The Senate’s FY23 Budget is available on the Massachusetts legislature’s website, by clicking here. Now that the Senate and Massachusetts House of Representatives have passed their respective budget proposals, both branches will now work together, form a conference committee and reconcile differences.
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