Connecticut has approved and funded their long-awaited baby bonds program.
It’s in an effort to give economic resources to kids born into poverty. The program is the first of its kind in the U.S.
State Treasurer Erick Russell hopes the program will start to bridge the state’s wealth gap.
“It's really a shot to help break the cycle of generational poverty for so many who have lived it," Russell said. "And this is sending a resounding message that your future can be bright regardless of what zip code you are born in and regardless of what family you are born into.”
The program will be funded by restructuring the 2019 Teachers’ Retirement Fund. It will cost around $200 million less than the state originally thought.
Connecticut will deposit $3,200 into a trust for every kid who’s birth is covered by HUSKY insurance. $381 million will be available for deposit.
Around 15,000 Connecticut births are covered by HUSKY each year.
The funds will be invested and available when the child turns 18 and can be used to buy a home, start a business, go to school and more.
Governor Ned Lamont said the bonds are expected to be worth around $15,000 when they are mature.
“That this is their money that they can invest in their future, or just give them a little bit more of a helping hand to help them get forward,” Lamont said.
Babies born under HUSKY in July will be eligible for the program.
