Capital
NYC, Connecticut Start ‘Baby Bond’ Programs to Shrink Inequality
- Connecticut will give $3,200 bond to Medicaid-eligible babies
- Bonds are aimed at trying to close racial wealth gap
This article is for subscribers only.
New York City and Connecticut are gifting publicly-financed savings bonds to children through two programs aimed at stemming racial income inequality in states with the worst wealth gaps in the U.S.
Connecticut will invest $600 million in its “baby bonds” program over the next 12 years, setting aside a $3,200 bond each for about 16,000 Medicaid-eligible children annually. New York City will set up $100 college savings accounts for all kindergarteners attending public school beginning in September. A public housing development in Queens piloted a similar program, adding $1,000 to young residents’ savings.