Bill > S279

This bill establishes the Baby Bond Program Trust Fund, a financial initiative designed to provide a $2,000 individual account for infants born to low-income households in North Carolina. Eligible individuals are infants born on or after January 1, 2024, to parents with household incomes at or below 200% of the federal poverty level. The program creates a Trust Fund administered by a six-member Board of Trustees, including ex officio members from state agencies and three appointed members with financial expertise. The initial $2,000 deposit will be automatically transferred to each eligible child's account, and additional contributions can be made by any person. Funds can only be distributed after the account holder turns 18, and then only for specific purposes such as postsecondary education expenses, primary home purchase, business capitalization, or investments that provide long-term wealth gains. The bill appropriates $10 million in nonrecurring funds for the 2025-2026 fiscal year to support the program, with the State Treasurer beginning to transfer deposits no later than February 15, 2026. The program aims to provide financial opportunities for children from economically limited backgrounds, encouraging long-term financial planning and personal economic development. Importantly, the accounts will not be considered a resource for means-tested state benefits, and distributions will not count as income for eligibility purposes.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/S279