Bill > S2146

This bill establishes the Massachusetts Baby Bonds program, a trust fund designed to address the racial wealth gap by providing financial opportunities for children from low-income or state-involved households. Specifically, the program will create individual accounts for children born on or after July 1, 2024, who either receive transitional cash assistance or are in the foster care system during their first year of life. When these children reach 18, they can access their account funds (up to age 35) for specific eligible purposes, including post-secondary education, investing in a Massachusetts-based business, purchasing a home in the state, or other wealth-building investments. The program will be administered by the state treasurer, who will create an advisory board and community advisory committee to guide its implementation. The fund can accept public and private donations, and the money will be invested to grow the accounts. To protect participants, the funds will not be considered an asset for determining other benefits, and participants will be encouraged to use financial resources and supports before accessing their funds. The program aims to create long-term financial opportunities for children from historically economically disadvantaged backgrounds by providing them with a potentially significant financial resource for future investments in education, entrepreneurship, or homeownership.

Government Affairs

https://malegislature.gov/Bills/194/S2146