Starting July 1, babies born in Connecticut that qualify for Medicaid will automatically be enrolled in a new baby bonds program.
In 2021, Connecticut was the first state in the nation to establish the program that looks to address the wealth gap in the state.
The program will be managed by the Office of State Treasurer Erick Russell.
“There would be $3,200 invested in a trust that would be managed in the Treasurer’s Office and that money would grow over time with the life of that child,” Russell said. “And when that individual is between the ages of 18 and 30 they would be able to access those resources for specific purposes. We anticipate that the dollar amount would be between 11 and 24 thousand dollars.”
Recipients of baby bonds money will be allowed to use the funds to help buy a home in the state, start a business, pay for higher education, or save for their retirement.
Russell said financial consultants will be available to help the recipients.
“We’ve had preliminary conversations around having mentor organizations or businesses that you can connect with these children not just when they’re receiving the funds but as part of their education process growing up, right, so you have mentors,” Russel said. “If you’re interested in starting a business you can be connected to someone that can help guide you along the path and be connected with an internship in their business as they’re thinking about some of these things.”
