Beginning on July 1, 2023, infants whose births are covered under HUSKY, the state’s Medicaid program, will be enrolled in an account with an initial deposit of $3,200 in Connecticut’s “Baby Bonds” Trust.
Baby Bonds, financial instruments designed to grow over time, will be invested by the Connecticut State Treasurer. When recipients are between the ages of 18 and 30, they will be able to claim the balance of the funds. An estimated $11,000 and $24,000 will be available to each participant, depending on when the funds are accessed.
Once participants complete a required financial literacy course, they can use the funds for specific wealth-building purposes, including:
AUTOMATIC ENROLLMENT:
Enrollment in the Baby Bonds program is automatic and based solely on an infant’s HUSKY coverage. Parents do not need to take further action to enroll their infants. The state estimates that more than 15,000 Connecticut children could be eligible for Baby Bonds each year.
CLAIMS:
Connecticut residency is required only at the time of a claim. For example, if an eligible beneficiary moves out of state at age 10, but is a Connecticut resident when they make their claim, they would be eligible.
DURATION OF PROGRAM:
The program is designed to invest in 12 years of babies. Funding for initial investments for those children has been made upfront, requiring no ongoing appropriations from the state.
For more information on Connecticut Baby Bonds, visit https://portal.ct.gov/OTT/Debt-Management/CT-Baby-Bonds
To download a one-page information sheet on the program, go to https://portal.ct.gov/-/media/OTT/July-2023-BB-Leave-Behind-Flyer_ENGLISH.pdf
SOURCES: Office of Connecticut State Treasurer Erick Russell; CT Baby Bonds Fact Sheet; Office of Governor Ned Lamont, Press Release June 2023
PREPARED BY: 211/jm
CONTENT LAST REVIEWED: July2023