In January 2022, Prosperity Now and the Institute on Race, Power and Political Economy at the New School collaborated on the first paper to outline the essential elements of state and local level Baby Bonds policies. Since then, Baby Bonds have launched in Connecticut and become a hot policy topic from the halls of legislatures to the offices of state treasurers across the US. With the momentum continuing to grow, we worked together to refresh the paper to reflect everything we’ve learned from these policy debates and early implementation of the first Baby Bonds programs. We are excited to publish the updated version of A Bright Future with Baby Bonds: How States and Cities Should Invest in Our Kids. 

The new and improved paper draws on all the legislative efforts, deep policy conversations, and implementation work in the field over the past two years. Highlights of the remarkable progress in just the last year include: 

• More than 7,800 babies are now eligible for the first-in-the-nation Baby Bonds program in Connecticut after Treasurer Erick Russell brokered a funding deal allowing the program to start on July 1, 2023.  

• Baby Bonds legislation championed by State Treasurer Zach Conine passed the Assembly in June 2023, though the session ended before a full vote could be taken in the Senate.  

• Baby Bonds have caught fire in New England with State Treasurers in Massachusetts, Vermont and Rhode Island looking to join Connecticut in having their own Baby Bonds programs.  

Baby Bonds – The Right Policy at the Right Time 

Looking around at all this activity, it’s fair to ask the question, what is it about Baby Bonds that has fueled this movement? It’s many factors, but the most obvious answer is that we’re talking about babies. The idea that a baby’s future could be limited for the simple reason that they are born into a family that lacks wealth to help them get their financial start in life is repugnant to most Americans of all political stripes. 

Another element fueling the increased interest in Baby Bonds is that wealth inequality in the US has become so stark—especially the racial wealth gap, along with divides between urban and rural areas—that it has become harder to ignore. The COVID-19 pandemic shined a particularly bright light on the divide. The issue of wealth inequality rose in American’s consciousness just as Sen. Booker and Rep. Pressley were touting the American Opportunity Accounts Act and state legislators were casting about for policy ideas to address the issue. It’s clear that Baby Bonds was the right policy at the right time.  

The Future’s So Bright… 

The growing support for Baby Bonds shows no signs of stopping. So far in 2024, Baby Bonds legislation is pending in several state legislatures, including Massachusetts, Washington and Vermont. And just in the last few weeks, Prosperity Now and the Institute have had the opportunity to speak alongside state treasurers in Rhode Island and Massachusetts at events to draw even more attention to Baby Bonds. At the national level, TIME magazine recently highlighted Dr. Darrick Hamilton, the architect of Baby Bonds and our paper’s co-author, for his work to close the racial wealth gap through Baby Bonds.  

As the momentum behind Baby Bonds increases, we hope that this updated paper will give policymakers and advocates the tools to champion effective Baby Bonds policies and ensure the policy’s continued uptake across the country—because a bright future for Baby Bonds is a brighter future for all!