Posted on May 5, 2022

Massachusetts Eyes Baby Bond Program to Narrow Racial Wealth Gap

Nic Querolo, Bloomberg, May 2, 2022

Massachusetts Treasurer Deb Goldberg is taking notes from a pioneering program as she convenes a task force to explore the issuance of the state’s first baby bonds.

Goldberg’s office is in touch with Connecticut treasurer Shawn Wooden, who was the first to launch such a program in 2021, she said in an interview. Baby bonds are government-funded trust accounts issued to newborn children. These accounts are expected to generate wealth over the course of their childhood. Studies have shown such programs can help narrow the racial wealth gap.

Wooden’s team is roughly a year ahead of Massachusetts in the process, Goldberg said. {snip}


So far, Connecticut and the District of Columbia have established baby bond programs. A handful of other states, including New Jersey and Washington state, have considered related proposals.