CONNECTICUT, USA — This past weekend Connecticut became the first state in the country to launch “Baby Bonds” and July 1, Hartford Healthcare celebrated the first child born as part of this program.
At 1:25 pm Saturday, at the Hospital of Central Connecticut, Nolan Osiel Osorio Ramirez was born, weighing 7lbs. 13.6oz. At that moment, the Connecticut state treasurer's office invested money on behalf of Nolan for his future.
“It's about building a future full of opportunity for everyone, regardless of what zip code you're born into, or what resources your parents have,” said Connecticut State Treasurer Erick Russell.
Any child whose birth is covered by HUSKY – the state’s Medicaid program – will have $3,200 invested on their behalf by the state treasurer’s office.
Russell says as many as 15,000 children a year could benefit from baby bonds.
“We can say yes to our children now, and we can say yes, every single year,” Commissioner of the CT Department of Social Services Andrea Barton Reeves said.
Children in the program will be able to apply to receive the money once they turn 18.
With a 6.9% assumed rate of return, this money could grow to nearly $11,000 per child by the time that child is able to access the funds.
“We want Connecticut to be the state of opportunity,” said Gov. Ned Lamont. “Baby bonds are an investment in hope.”
Russell says this money is to be used for things like buying a home, starting a business, paying for higher education, or rolling into a retirement savings account.
“It is really setting a tone about our commitment, not only to continue to make the strides that we have in terms of addressing our overall fiscal health as a state, but also to really invest in our long-term future,” Russell continued.
Advocates and state officials say these bonds are meant to address generational poverty in Connecticut, saying this money will level the playing field and provide opportunities for young people.
“Most kids don't have something to fall back on or to draw on when it's time for them to take that first step of trying to buy a home or start a business or go on with education,” added Hartford Mayor Luke Bronin. “For most kids that's unimaginable, to have something like that to draw on.”
This program is fully funded by the state for the next 12 years.
Officials say right now, families don’t need to do anything to be eligible for the baby bonds program – if their child’s birth is covered by HUSKY, they are automatically enrolled.
Emma Wulfhorst is a political reporter for FOX61 News. She can be reached at ewulfhorst@fox61.com. Follow her on Facebook, Twitter and Instagram.
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