State Considering “Baby Bonds”

What is happening? Washington State is considering issuing baby bonds that aren’t tiny bonds with tiny legs but rather are bonds that are designed to “lift future generations of low-income residents toward a path of financial independence.” It would create a pool of money for every child born under the state’s Medicaid program. These kids could then access a portion upon adulthood for homeownership, education or pursuing a small business.

Why is this important? Connecticut and Washington, D.C. have created similar programs. Massachusetts and New Jersey are also considering it.

Governing | Washington State Considers Baby Bonds to Address Wealth Gap