Connecticut will become the very first state to offer baby bond trusts as it attempts to close the "racial wealth gap," according to a <a href="https://portal.ct.gov/-/media/OTT/Press-Room/Press-Releases/2021/PR060921-CTbabyBond.pdf">state treasury news release</a>. It is hoped that the move will address long-standing economic and race-based wealth disparities in the state as it is known to have one of the highest levels of income inequality. Children born into poverty after July 1 - and who are enrolled in Medicaid - will be eligible for the program, the release states. The state will fund the initiative, allocating $50 million a year for the next 12 years so that $3,200, which will be tax-free, can be invested for the eligible children. [[twitterwidget||https://twitter.com/EconomicSecProj/status/1406286149560246273]] When they turn 18, the invested sum should amount to around $11,000, which will give the young adults a huge helping hand, the <a href="https://www.tribpub.com/gdpr/courant.com/" target="_blank" rel="noopener noreferrer nofollow">Hartford Courant</a> reports. All participants in the scheme must collect the money by the time they are 30, although they can access it anytime after they turn 18. The idea behind the $600 million program is that the money will be used to help the recipients' financial standing in life. It could be used to contribute towards higher education, buying a home, or starting a business. State Treasurer Shawn T. Wooden said in a <a href="https://portal.ct.gov/-/media/OTT/Press-Room/Press-Releases/2021/PR032521Treasurer-Wooden-Local-And-Federal-Leaders-Call-On-The-Legislature-To-Combat-The-Growing-Rac.pdf">release</a> that the baby bond trust would address the state's racial wealth gap "by investing directly in children born into poverty to boost Connecticut’s economy." He added: "One of the most effective ways to narrow the racial wealth gap and break the cycle of poverty is for the State to establish saving accounts that directly invest in children born into poverty." [[twitterwidget||https://twitter.com/FOX26Houston/status/1407148864604413957]] Wooden continued: "By taking bold action now, we can change the life trajectories of thousands of Connecticut residents while also enhancing the economic trajectory of our State." Per <a href="https://ctmirror.org/2021/06/09/ct-to-give-baby-bonds-to-every-child-born-into-poverty/">CT Mirror</a>, the State Treasurer, who was raised in a poor neighborhood in Hartford, said on the day he announced the initiative: "I witnessed firsthand how generational poverty holds a community and individuals back. "I was able to make it. I am the exception. … I know it's not simply about kids not working hard enough. It’s about opportunities and access. "Oftentimes, we talk about people pulling themselves up by their own bootstraps. Well, the truth is, in the communities that we’re trying to target, there are simply not enough bootstraps." <h6>Featured image credit: Prostock-studio / Alamy</h6>

Connecticut to give every child born into poverty $3,200 in bid to close 'racial wealth gap’

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