Bipartisan SAFER Act Targets States' Use of Unclaimed Investment Assets
Federal lawmakers have introduced the bipartisan SAFER Act in response to reporting that prompted questions about how states handle unclaimed investment assets, particularly after a CBS News investigation into California's practices. The legislation would impose new limits and guardrails on states' use of dormant financial accounts and update recovery rules for modern instruments such as digital assets, aiming to make it easier for rightful owners to reclaim property and harder for states to treat those funds as routine operating revenue.
The push comes against a backdrop in which U.S. states collectively hold more than $70 billion in unclaimed property—an issue that touches roughly one in seven Americans—and returned just over $4.49 billion in fiscal year 2024. Financial accounts typically become unclaimed after three to five years of inactivity, often because owners move, change jobs, or die without heirs aware of the assets. Critics point to California as a flashpoint: a CBS News analysis cited on social media found the state holds more than $15 billion in unclaimed property but returns only a small share (about 3.5%), while other states sometimes use unclaimed-property receipts to plug budget gaps — for example, South Dakota's FY25 surplus exceeded expectations by roughly $47 million in part because of higher-than-anticipated receipts.
Public reaction on social platforms has been sharply divided and has helped drive attention on the issue. Some users and consumer advocates have called for stronger oversight and replacement of state officials seen as mismanaging funds, while others praise provisions in the new bill that would treat digital assets differently from cash so owners could recover holdings like cryptocurrencies in their original form. Coverage has shifted notably: earlier reporting tended to treat unclaimed-property programs as routine state custody and a consumer-return effort, but the recent investigative work by CBS News reframed the story by exposing low return rates and broader use of the funds for state budgets, prompting bipartisan federal scrutiny and the SAFER Act response.
📊 Relevant Data
Nationwide, U.S. states collectively hold more than $70 billion in unclaimed property, affecting approximately 1 in 7 Americans.
The US government is holding $70B that belongs to Americans. Here's how to claim yours — Yahoo Finance
In fiscal year 2024 (July 1, 2023, through June 30, 2024), states collectively returned over $4.49 billion in unclaimed property to rightful owners.
National Association of Unclaimed Property Administrators Annual Report — National Association of Unclaimed Property Administrators
Financial accounts typically become unclaimed property after 3 to 5 years of inactivity, often due to owners moving without updating addresses, changing jobs and leaving final paychecks undelivered, or dying without heirs being aware of the assets.
When is a deposit account considered abandoned or unclaimed? — Office of the Comptroller of the Currency
Unclaimed property serves as a significant non-tax revenue source for state budgets, with examples like South Dakota's FY25 budget surplus being $47 million over expectations due to higher-than-anticipated unclaimed property receipts.
State's FY25 surplus fueled by unclaimed property as lawmakers look ahead — South Dakota Public Broadcasting
📌 Key Facts
- California holds more than $15 billion in unclaimed property and generates about $1 billion annually for its General Fund from those assets, but has returned only about 3.5% of what it holds.
- The SAFER Act would prohibit states from taking custody of securities, digital assets or investment accounts unless the owner is confirmed deceased, or for retirement‑age accounts only after repeated death checks and long periods with no contact.
- Sen. Elizabeth Warren has requested detailed, state‑by‑state information from the National Association of Unclaimed Property Administrators on how unclaimed property laws operate and are changing, citing an increase in Americans losing savings and investments to state coffers.
📰 Source Timeline (1)
Follow how coverage of this story developed over time