Connecticut recently became the first state in the nation to create trusts, “Baby Bonds”, for children born in the state who live in families with low income.
According to the State of Babies Yearbook: 2021, Connecticut is home to over 106,000 babies, representing 3% of the state’s population. More than 28% of those children live in households with incomes less than twice the federal poverty line, placing them at economic disadvantage from the moment they are born. Similar to states across the nation, due to the impacts of systemic racism, a disproportionate number of families with low income in Connecticut are Black and Brown.
To address this inequity and begin to alleviate the tremendous wealth gap in the state, Connecticut recently became the first state in the nation to create trusts, “Baby Bonds”, for children born in the state who live in families with low income. Beginning in July, the state will invest $3,200 for each newborn covered by Medicaid at birth. By the age of 18, the fund will amount to over $10,000 per child and can be used for education expenses, investment in a business, home purchase, or retirement. To learn more about this exciting opportunity for Connecticut babies, click here.
ZERO TO THREE commends Connecticut policymakers and advocates for this bold legislative step in addressing generational poverty and racial inequities.