A bill in Montpelier could make the state the second in the nation to create a baby bond program

By Stephen Biddix

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    MONTPELIER, Vermont (WPTZ) — In Montpelier, a bill was introduced that would create the Vermont Baby Bond Trust. The goal is to help give kids born into impoverished families the ability to be successful.

If passed, any baby born after July of this year in a low-income family on Medicaid would have $3,200 set aside for them by the state’s treasurer’s office. The bonds become accessible to beneficiaries when they turn 18.

Estimates show the bonds build up to over $11,500 by age 18 and nearly $24,500 if they wait till they’re 30.

The funds must be used for wealth-building activities like purchasing a home, pursuing higher education, or investing in businesses.

“It has a real profound impact, I think, on those individuals that would benefit from this, helping them build some generational wealth, helping them have a strong financial foundation for their professional life, and then also for their children and beneficiaries as well,” Mike Pieciak, Vermont’s treasurer, said.

The bill remains in committee for testimony but, if eventually passed, would make Vermont the second state in the nation to start this kind of program behind Connecticut.

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