Earlier this month the DC Council unanimously passed the Fiscal Year 2021 city budget, securing significant wins for babies and their families. Of note were two economic initiatives for families with young children.
- The Child Wealth Building Act will create a child trust fund account for all children in households with incomes of 300% of poverty or less. These Baby Bonds will begin with a $500 initial deposit and will include annual payments of up to $1,000 based on household income. Children will be able to access the funds at the age of 18 to use for education, business ownership, real estate, or other investments.
- A Monthly Basic Income was established for low-income families and will be supported by raising the DC match to the Earned Income Tax Credit to 70% in 2022, 85% in 2026 and 100% in 2027. The funds will be disbursed in monthly installments to ease the cost of living throughout the year.
In addition to these economic initiatives for children and families, the DC budget also included partial funding for DC’s landmark Birth to Three for All DC Act to increase early educator compensation to parity with public school teachers.
ZERO TO THREE commends DC advocates and legislators on these important initiatives that will improve the lives of children and families across the District. Register now for a September 23 webinar featuring leaders from DC and New Jersey talking about their lessons learned in their efforts to strengthen infant-toddler care in the context of pre-k expansion.