Prosperity Now is thrilled that Connecticut is leading the nation as the first to implement a state-level Baby Bonds program. Under this program, the state will invest $3,200 for each Connecticut baby born after July 1, 2021, whose birth is covered under the state’s Medicaid program, HUSKY Health. Once each child reaches adulthood, they have until their 30^th birthday to access the funds. This nest egg can help children attend college or trade school, buy their first home or start a business.

Connecticut’s Baby Bonds proposal builds on an idea developed and long championed by economists Darrick Hamilton and William “Sandy” Darity Jr., as well as 15 years of practice and research around Children’s Savings Account (CSA) programs. Baby Bonds programs are a crucial step towards closing the racial wealth divide and leveling the playing field for children of color in building wealth. Currently, White families have eight times the net worth of Black families and five times the wealth of Latinx families in the United States. Families of color have experienced centuries of systemic racism including job, housing and banking discrimination that have prevented people of color from building the generational wealth that White families continuously benefit from. With the Connecticut Baby Bonds program, children from low-income households in Connecticut will enter adulthood with an essential seed investment that will help their financial stability grow.

Connecticut’s new Baby Bonds program is part of a national discussion to get Baby Bonds implemented across the country. Sen. Cory Booker (D-NJ) and Rep. Ayanna Pressley (D-MA-7) proposed the American Opportunity Accounts Act which would create Baby Bonds for all children. The act would provide each child with an initial $1,000 deposit and additional annual contributions into the account. Children from the lowest-income households would receive the maximum annual contribution of $2,000. Each child’s account becomes accessible once they reach the age of 18. This investment in our children’s future would encourage wealth-building and a bright path forward.

We must celebrate Connecticut’s new Baby Bonds program as the first of its kind – but, hopefully, not the last. To help Prosperity Now push for a national Baby Bonds program for all children, ask your legislators to support the American Opportunity Accounts Act and help close the racial wealth divide today!