Solution Found to Fund Baby Bonds Program
May 17, 2023I applaud the commitment and creativity the governor’s office is making to fund the Baby Bonds Program. This first-of-its-kind statewide policy is designed to invest directly in Connecticut children born into poverty while simultaneously narrowing the generational and racial wealth gaps in our state.
Under the current law, $3,200 would be placed in a trust on behalf of each baby born into HUSKY, the state’s Medicaid program, starting July 1. Those investments would grow over time and recipients could access that money between the ages of 18-30.
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| Baby Bonds will encourage children to stay in Connecticut |
The proposal also:
- Reduces the overall cost of the program by over $200 million
- Does not require borrowing
- Does not affect the state budget
- Repurposes unneeded reserves and replaces them with a relatively inexpensive insurance policy
State Treasurer Erick Russell’s top priority since taking office has been finding a solution to fund the program. I thank him, former Treasurer Sean Wooden, and everyone in between for their tremendous teamwork to find a path to making the Baby Bonds Program a reality. This law will change the lives of countless families, especially in communities of color like Waterbury.
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I helped create the concept and final bill on Baby Bonds back in 2021 when I served as the Chair and of the Black and Puerto Rican Caucus. The House and Senate passed the program two years ago, and since then I’ve been working with the Governor’s office to get it funded.
This legislation will bring us one step closer toward financial equality and facilitate the pursuit of the American dream for those who thought it was unattainable.