Unclaimed money stacked

What Do States Do With Unclaimed Money?

Unclaimed money in vault

One of the more common questions surrounding unclaimed money and unclaimed property is what the states do with the money while it sits? Laws vary from state to state as to the regulations on what they can do with the money as it sits waiting to be claimed. For most, the money is put into a trust like account and invested, the dividends and interest from those accounts are then dispersed in various state programs.

States of Colorado and Louisiana Consider New Initiatives With Unclaimed Money Accounts

States like Louisiana and Colorado are working to pass new legislation to protect their unclaimed money accounts from being ‘raided’ from the state government.

In Colorado they are proposing that the unclaimed money fund be used to make the largest investment in affordable housing the state has ever seen. House Bill 1322 would invest $30 million per year for three years in affordable housing state wide. State Treasurer David Young assured lawmakers that the fund could help with housing while still maintaining the ability to pay claims that come forward in the three year timeframe.

In Louisiana, an initiative led by Treasurer John Schroder is looking to create some safeguards around the unclaimed money fund. His proposal creates a trust for unclaimed money Louisiana. This trust would be invested and then the profits would be used to fund infrastructure projects. It would mainly be used by rural municipalities that have fiscal issues. The new law set up a new 7 member board of directors that will choose the projects and issue the bonds to the municipalities.

Many states have similar trusts set up to ensure the funds are not wasted and instead used to fund programs such as education in Florida. The sunshine state solely uses its revenue for public education. Check to see how your state uses its funds by SEARCHING YOUR STATE

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