Campaign for Every Kid's Future Newsletter February 2024

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Baby Bonds Are Lookin' Bright ☀️

In January 2022, Prosperity Now and the Institute on Race, Power and Political Economy [[link removed]] 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 [[link removed]] 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 [[link removed]].

Read More Here [[link removed]] A Day of Action for Baby Bonds in Massachusetts

In January, Prosperity Now, along with The Midas Collaborative and United Way of Massachusetts Bay, hosted a policy Day of Action at the Massachusetts State House. Our Day of Action gathered advocates, practitioners and legislators from across the state to build support for Baby Bonds ( H.1157 [[link removed]]/ S.1999 [[link removed]]) and matched savings [[link removed]] ( H.1023 [[link removed]]/ S.628 [[link removed]]) legislation. After our programming, we walked the halls of the State House and spoke with 23 legislative offices in support of these bills and left fact sheets with another 46 offices.

We heard from panelists Shira Markoff [[link removed]] of Prosperity Now, Nicole Obi [[link removed]] of BECMA, Emilio Dorcely [[link removed]] of Urban Edge, and Kelly Harrington [[link removed]] of Boston Indicators on the racial wealth divide in Massachusetts and how these policies would directly address these inequalities. We also heard from Treasurer Deborah Goldberg [[link removed]] on the importance of Baby Bonds in breaking down barriers to opportunity for Massachusetts families and Senator Jamie Eldridge [[link removed]] on matched savings as a vehicle to help families build assets and wealth in the short term. A week after the event, both H.1157 and S.1999 were reported out of their respective committees favorably following the state’s bill reporting deadline.

Rhode Island Treasurer Championing Baby Bonds

Adding to the momentum on Baby Bonds in New England, Rhode Island Treasurer James Diossa announced his plan to create a Baby Bonds program [[link removed]] in the Ocean State. He discussed the policy as part of his Investing in Rhode Islanders framework [[link removed]] unveiled in a roundtable [[link removed]] on January 23rd. The proposed Rhode Island Baby Bond Trust Act would invest $3,000 for babies born into households receiving Medicaid. Beginning at age 18, participants could use the funds for higher education or vocational training in Rhode Island, to purchase a home in the state, start a business in Rhode Island or purchase a vehicle.

Senator Casey Introduces 401Kids Savings Act

Senator Bob Casey (D-PA) recently introduced [[link removed]] the 401Kids Savings Act ( H.R. 7162 [[link removed]]), which would create a hybrid state-federal Children’s Savings Account (CSA) program [[link removed]] in which states would have the authority to establish 401Kids accounts under their state’s 529 plan. There would be a federal program to catch any kids in states that chose not to operate the program or who are born abroad. The program would be universal, covering all kids under 18, though only kids from low- and moderate-income households would receive government contributions in their accounts. Children from households with an adjusted gross income below $75k ($150k if married) would receive an annual federal contribution of $500, with a phase out for households with higher incomes. Children from households eligible for the EITC will receive an additional $250 per year in their accounts, plus are eligible for a 1:1 match of family deposits up to $250/year. Funds can be used for postsecondary education, small business, homeownership or rolled over into a retirement account.

Wisconsin Legislators Propose CSA Program

Legislators in Wisconsin have proposed a statewide CSA program called WisKids [[link removed]]. The program would put aside $25 for all children born or adopted in Wisconsin into the state’s 529 program, Edvest. Funding for the program would come from the Edvest program. Participants could use the funds for postsecondary education.

In the News

Articles and Podcasts Spotlight Dr. Darrick Hamilton and Baby Bonds

Dr. Darrick Hamilton, who first conceptualized Baby Bonds, was highlighted as part of a TIME magazine series on Black leaders working to close the racial wealth gap [[link removed]]. The article discusses how Dr. Hamilton and Dr. William “Sandy” Darity developed the Baby Bonds concept [[link removed]] and how the momentum has grown in the past few years. Dr. Hamilton also joined the NPR Podcast Planet Money [[link removed]] to talk about Baby Bonds as part of a discussion on three big economic ideas. Lastly, Dr. Hamilton wrote an op-ed [[link removed]] on how the proposed Vermont Baby Bonds program would create economic opportunity.

Commentary: ‘Baby bonds’ offer hope [[link removed]] | The Davis Enterprise

Celestina Ramirez—a high school senior and member of the California HOPE Program’s Youth Panel of Experts—writes about the new HOPE program, which sets aside funds for children and youth who lost a parent to COVID-19 or who are in long-term foster care. Ramirez talks about her experience in foster care and how HOPE will help support her goal of attending college next year.

Could a Novel “Baby Bond” Pilot program Help to Close Atlanta’s Racial Wealth Gap? [[link removed]]

This article discusses the Georgia Resilience and Opportunity (GRO) Fund’s plan to pilot an accelerated Baby Bonds program for 15- to 24-year-olds.

Help Americans Build Wealth with ‘Baby Bonds’ [[link removed]]

Chuck Collins, director of the Program on Inequality at the Institute for Policy Studies argues that Baby Bonds are a bold solution to “help bust up the dangerous concentration of wealth at the top of our country’s economic ladder.”

Resources & Publications

Prosperity Now’s 2024 Federal Policy Priorities [[link removed]] | Prosperity Now | February 2024

Prosperity Now’s 2024 State and Local Policy Priorities [[link removed]] | Prosperity Now | February 2024

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