SACRAMENTO — State Treasurer Fiona Ma is sponsoring Senate Bill 1362 (SB 1362), authored by Senator Josh Newman (D-29), which would allow the California Achieving a Better Life Experience, or CalABLE, board to deposit $250 to each new CalABLE savings account for individuals with disabilities.

The bill would also allow CalABLE to make additional financial incentives available. Both provisions are subject to appropriation by the Legislature.

“SB 1262 would help boost a program that has already shown the ability to significantly impact the lives of thousands of individuals with disabilities, helping many avoid living in poverty. That’s a good deal for California,” said Treasurer Ma, chair of the CalABLE board. “Giving CalABLE the ability to incentivize accounts brings it in line with other state-sponsored savings programs and positions it for continued growth. I am thankful for Senator Newman authoring this important legislation.”

CalABLE is California’s savings and investment program for individuals with disabilities. Participants save for disability-related expenses by putting money in tax-advantaged investments, while protecting their eligibility for means-tested public benefits programs. After-tax contributions allow earnings to grow tax-deferred, and withdrawals, when used for a broad range of Qualified Disability Expenses, are federal and state tax-free.

“SB 1362 will encourage eligible Californians with qualifying disabilities to fully utilize the savings accounts to which they’re entitled.

This bill will encourage and assist disabled Californians to open a CalABLE account as a first step toward ensuring their long-term financial security.

By better ensuring the financial well-being of individuals with disabilities, we can create a more inclusive and prosperous California,” explains Senator Newman.

CalABLE currently has more than 10,000 accounts, with approximately $127 million in assets under management.

While these numbers are significant, it is estimated that it only represents less than 1% of the state’s eligible disabled population.

With passage of SB 1362, California could exponentially increase participation and empower millions of Californians with a path to financial security. It could also establish CalABLE as the most competitive choice for Californians, compared to out of state ABLE programs.

CalABLE is already poised to see significant growth as a result of state and federal legislation to expand eligibility for ABLE programs. Starting in 2026, the age of onset of disability will be raised from before age 26 to before age 46.

This expansion is believed to make an additional 6-8 million Americans eligible for ABLE programs nationwide, including 1 million military veterans. More Californians will be able to benefit from this savings program thanks to Treasurer Ma working continuously with the legislature.