Remember back in 2021 when we celebrated Connecticut and Washington, DC becoming the first two locations to pass Baby Bonds legislation? Those were exciting times. But when it came time to fund the programs, the inevitable pushback came.  

Those of you who spend your days advocating for transformational change know the arguments well. Even from our allies in government we hear things like, “we just don’t have the money right now, maybe next year” or “we have so many other needs right now, so why should we fund something that doesn’t pay off for at least 18 years.” Somehow there’s always money for the policies and tax breaks that benefit big businesses and wealthier taxpayers. But when it comes to policies to benefit children and families, especially in communities of color, we’re told resources are limited and one policy gets pitted against another. 

This time, however, the policy champions and advocates pushed back against this narrative AND WON! Here’s what happened: 

Connecticut

Under the original Baby Bonds legislation passed in 2021, children born in the state beginning July 1, 2021, whose births were covered by HUSKY (Medicaid) were supposed to be eligible. The original plan was for the state to issue a $50 million bond annually to cover the program, but in 2022, Governor Ned Lamont (D) balked at issuing the funding bond despite signing the legislation. In 2022, the legislature delayed the program, with eligibility instead starting with children born beginning July 1, 2023.  

As 2023 dawned, the governor continued to thwart efforts to fund the program. Advocates, including our partner Connecticut Voices for Children, kicked their ongoing efforts to push for funding into high gear, meeting with state legislators and driving media attention. Backed by this advocacy community, newly elected State Treasurer Erick Russell picked up the mantle from former Treasurer Shawn Wooden, who had led passage of the bill. Russell worked closely with legislators and the governor to find an alternate funding source. Finally, on May 16, the treasurer, governor and legislators announced a funding plan that would invest $600 million over 12 years for the program and enable the program to launch in July.

Washington, DC

The DC Council had appropriated four years of funding to plan and implement the Child Trust Fund (Baby Bonds) program in 2021. However, Mayor Muriel Bowser’s (D) proposed fiscal year 2024 budget zeroed out funding for the program. Her staff said this was because it was a tight budget year with expected lower revenues and the program hasn’t been launched yet. Later, the Chief Financial Officer said that in fact the funding was omitted in error. In either case, the DC Council had to scramble to find funding for the program as it began its work to make changes to the mayor’s proposed budget. Led by Councilmember Kenyan McDuffie, who had originally championed the bill, the Council restored funding in the version of the budget passed on May 16. Although another budget vote is scheduled for later this month, the prospects for ultimate passage of this funding look strong. 

"Somehow there’s always money for the policies and tax breaks that benefit big businesses and wealthier taxpayers. But when it comes to policies to benefit children and families, especially in communities of color, we’re told resources are limited and one policy gets pitted against another."

While budget fights were happening in Connecticut and DC, the Nevada Assembly’s Committee on Ways & Means held a hearing on a potential statewide Baby Bonds program on May 17. Legislative hearings on the Massachusetts Baby Bonds bill are expected in the fall. And in New York, legislators introduced a bill that would provide Baby Bonds to children who lost a parent or caregiver to COVID-19. With all this going on, it’s fair to say that the momentum for state and local Baby Bonds remains strong.  

And if you want to help keep it going, join our upcoming For Every Kid’s Future Day of Action on 6/13. We’ll be advocating for Baby Bonds at both the state and federal level and amplifying how this policy solution can be a critical piece in narrowing the racial wealth divide. Details and a toolkit with sample messages will be posted here.