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5/23/2025
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Senate passes LaMountain bills to increase protections on college savings plans and ABLE accounts
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STATE HOUSE — The Senate Thursday approved two bills introduced by Sen. Matthew L. LaMountain (D-Dist. 31, Warwick, Cranston) that would protect college savings plans and savings accounts for disabled Rhode Islanders. Both bills were submitted by Senator LaMountain on behalf of General Treasurer James A. Diossa.
The first bill (2025-S 0730) would protect tuition savings plans from judicial attachment irrespective of the state in which the account was opened.
“Saving for college is one of the most important things we do as parents,” said Senator LaMountain. “While Rhode Island law currently protects tuition savings programs from attachment by creditors, it only applies to accounts that were opened in Rhode Island through the Rhode Island Student Loan Authority. This legislation extends that same protection to tuition savings accounts opened in other states.”
The second bill (2025-S 0731) would prohibit the state from seeking repayment for expenditures made on behalf of disabled Rhode Islanders from an Achieving a Better Life Experience (ABLE) account upon their death.
“ABLE accounts have been a successful way for individuals with disabilities to save for the future without having an impact on their eligibility for federal or state benefit programs,” said Senator LaMountain. “Many expenses not paid for through Medicaid, such as medical equipment or housing modifications, are purchased through these accounts. This bill would prevent state agencies from seeking reimbursement for those expenditures after the individual’s death. Any money saved through an ABLE account would remain with the heirs of a designated beneficiary rather than return to the state.”
Both measures now move to the House of Representatives where Rep. Matthew S. Dawson (D- Dist. 65, East Providence) has introduced the tuition savings bill (2025-H 5645) and Rep. Terri Cortvriend (D-Dist. 72, Portsmouth, Middletown) has introduced the ABLE account bill (2025-H 5973).
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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