CT Baby Bonds: Investing in Connecticut’s Future
CT Baby Bonds: Investing in Connecticut’s Future
In a groundbreaking move, Connecticut has launched the CT Baby Bonds initiative, the first of its kind in the nation, aimed at investing directly in children born into poverty. The program will allocate funds on behalf of each baby born in Connecticut whose birth was covered by HUSKY, the state’s Medicaid program, with the funds managed and invested by the Office of the Treasurer.
Eligibility and How It Works
Children born on or after July 1, 2023, whose birth was covered by HUSKY are automatically eligible for CT Baby Bonds. A total of $3,200 will be invested on behalf of each eligible child, with the funds to be claimed when the child reaches adulthood between the ages of 18-30. The funds can be used for various purposes, including buying a home in Connecticut, starting or investing in a business, paying for higher education or job training, and saving for retirement.
The initial investment is expected to grow to between $11,000 – $24,000, depending on when claims are filed for approved uses. To be eligible to claim the funds, participants must be Connecticut residents and complete a financial literacy course to ensure they have the necessary knowledge to make informed financial decisions.
Why CT Baby Bonds is Needed
CT Baby Bonds aims to combat systemic poverty and create economic opportunities for individuals born into disadvantaged circumstances. By providing access to capital at a crucial stage in their lives, the program seeks to narrow the wealth gap in Connecticut and empower young people to build wealth and pursue economic opportunities in the state.
With an estimated 15,000 children born eligible for the program each year, CT Baby Bonds has the potential to generate economic activity in communities across the state, fostering a new generation of homeowners, entrepreneurs, investors, and skilled workers. The program also aims to encourage young people to stay in Connecticut to pursue academic and economic opportunities.
What’s Next and How to Learn More
As eligible children grow, outreach, parent communication, and community support services will be developed and expanded to support the program. Parents of eligible children do not need to take any action to enroll, as eligibility is automatic. The Connecticut Baby Bonds Trust has already been funded to support investments for 12 years of children.
For more information about CT Baby Bonds, interested individuals can email [email protected] or call (860) 702-3010. The program’s goal is to provide a long-term investment in individuals, giving them the resources they need to shape their own future and contribute to the economic growth of Connecticut.
CT Baby Bonds is a bold step towards creating a more equitable and prosperous future for all residents of Connecticut, ensuring that every child has the opportunity to thrive and succeed.