Nevada Treasurer Zach Conine this week filed legislation for the 2023 session that would create a Baby Bonds Program for long-term investment for Nevada’s youth. If approved by the legislature, Conine said the program would “combat generational poverty and address the racial wealth gap in Nevada.”
The Baby Bonds proposal would put $3,200 in an investment account at the birth of each child whose birth is covered by Medicaid. In Nevada, it’s estimated that nearly 44% of births are covered by Medicaid.
That seed money would be invested by the treasurer’s office through each child’s 18th birthday, during which time it would grow to $10,600 – $13,800.
The funds would then be turned over to the child once they reach 18 and could be used for eligible expenses including:
- Post-secondary education, including vocational education and apprenticeship programs;
- To purchase a home in Nevada;
- To start a business in Nevada; or
- To make any other investment in financial assets that provide long-term gains to wages and/or wealth.
“If we are serious about moving the needle to address disparities in wealth and economic outcomes for communities across our State, then we need big ideas that will help move Nevada forward,” Conine said. “If enacted, this initiative would be the largest effort to address generational poverty our State’s history and it would provide low-income kids a real shot at achieving the American Dream.”
The concept of Baby Bonds has been discussed nationally, but until a federal program rolls out several states are moving to create their own programs now.
Source: Nevada Treasurer’s Office