FIGHTING FOR BABY BONDS

Program Signed Into Law In 2021 Remains Unfunded

Connecticut Department of Social Services is where it got messy. Despite this momentary setback, I believe we will aggressively work through all of the structural issues and hurdles to create the funding stream needed to fund our most important resources, the children. We cannot afford another delay. Black, Brown and White poor communities, like my own, need the Baby Bonds program to get rolling in order to see the benefits 18 years down the road. In the name of equity and fairness I’m excited about the strong upside of this program and ability to have a piece of the puzzle in place to address the wealth gap. There are other wrap around services that will compliment this program; the civic engagement piece is essential, along with workforce training.

The immediate plan is to start the program and funding stream for July 1, 2023. I want to express my thanks to incoming Treasurer Erick Russell for picking up the load and working positively towards a final resolution. I want thank new BPRC Chairwoman Senator Pat Miller for entrusting me (the former

BPRC Chairman) to stay involved in working through the Baby Bonds funding issues.

There has been a delay in staring the Baby Bonds program, but I’m not focused on casting blame. Right now I’m laser focused on getting this done up and running. The lines of communication between the Treasurer’s office, leadership in both the House and Senate, the State bonding teams, and Governor Lamont’s office are working collectively to achieve a hand up for vulnerable children born into poverty.

As a child born into poverty, I fully understand what a hand up looks like versus a handout.

From my life experience I stand firmly behind the Baby Bonds Bill, a long-term state initiative that invests money - up to $3500 - for every child whose birth in Connecticut was covered by HUSKY (State Insurance).

It’s an equity program, a bold investment in the future of our most vulnerable youth to address the wealth gap and spread fairness and balance in Connecticut. This won’t resolve all issues and it’s imperative that we continue to expand/support programs while they’re in the development ages. We must nd a way to help in the short and long term, the children’s future depends on it.

The money doesn’t automatically come to the child when they turn 18. They have to qualify for it during the 18-30 year time period in their lives, and there are only four life changing events they can use it for.

• Buying a home in Connecticut.

• Saving for retirement

• Using it for college or training

• Starting or investing in a business

In 2021, Connecticut became the first state in the nation to pass an initiative that invests directly in children born into poverty. U.S. Senator Corey Booker from New Jersey has tried several times to implement a national Baby Bonds program and his efforts so far have been unsuccessful.

The idea for Baby Bonds in Connecticut was driven by former State Treasurer Sean Wooden, and with muscle from the Black and Puerto Rican Caucus, and assistance from House Speaker Matt Ritter, and the State Senate, the bill navigated through the legislature and was signed into law by Governor Ned Lamont.

Despite being signed into law, the program was not funded and has not been implemented (yet).

The process of sorting through the work of the Treasurer’s Office and the

CT Baby Bonds is a

FIRST-IN-THE-NA initiative that invests money baby born in Connecticut birth is covered by HU

The funds are invested in a trust managed by the Office of the Treasurer. Between the ages of 18 and 30, the young person can make a claim for the funds to be used for:

Buying a home in Connecticut

Saving for retirement

Paying for post-secondary education or training

Starting

Frequently Asked Questions

Who is eligible?

A Long Term Investment In Connecticut

An estimated 15,600 children are born into poverty each year in CT –nearly half of all births CT Baby Bonds will give young people a reason to stay in the state, promote homeownership and new business creation, and provide wealthbuilding resources to residents from every city and town.

Babies born on or after July 1, 2023, whose birth was covered by HUSKY will be automatically allocated a share of the CT Baby Bonds Trust

How are the funds claimed?

Between the ages of 18 and 30, beneficiaries may submit a claim for an allowable expense if they are a Connecticut resident and have completed an approved financial literacy course

What's next?

Implementation and formation of the trust is underway. The program calls for $600 million in funding over the next 12 years