CT Baby Bonds
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Investing in Connecticut’s Future with CT Baby Bonds
CT Baby Bonds is Connecticut's first-in-the-nation initiative to invest directly in children born into poverty. The program invests funds on behalf of each baby born in Connecticut whose birth was covered by HUSKY. Those funds will be held, managed and invested by the Office of the Treasurer.
ELIGIBILITY
There is no need to enroll or apply. Eligibility is automatic for children:
- Whose birth was covered by HUSKY, Connecticut's Medicaid program, and
- Were born on or after July 1, 2023
HOW IT WORKS
$3,200 will be invested on behalf of each Connecticut baby whose birth is covered by HUSKY. When a participating child reaches adulthood (between the ages of 18-30), they will be eligible to claim funds to be used for:
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Buying a home in Connecticut
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Starting or investing in a Connecticut business
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Paying for higher education or job training
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Saving for retirement
It is expected that the value of the initial investment will grow to between $11,000 - $24,000 depending on when claims are filed for approved uses. To be eligible to file a claim, participants must be Connecticut residents and complete a financial literacy course, providing a foundation of financial knowledge to guide their decision-making as young adults.
WHY WE NEED IT
CT Baby Bonds is designed to combat systemic poverty and generate economic opportunity. Connecticut is one of the wealthiest states in the nation, yet features one of the most significant wealth gaps. CT Baby Bonds will help narrow that gap and level the playing field by giving young people access to capital at a time in their lives when they can begin to build individual wealth.
An estimated 15,000 children each year will be born eligible for the program, spanning all of Connecticut's 169 cities and towns. The result will be an influx of economic activity for local communities, generating tens of thousands of new potential homeowners, entrepreneurs, investors, and skilled workers. It will also be a tool to encourage young people to stay in Connecticut to pursue academic and economic opportunities.
CT Baby Bonds is a long-term investment directly in people, giving them access to resources that will allow them to shape their own future right here in Connecticut.
WHAT'S NEXT
Outreach, parent communication, and community support services will be developed and expanded as eligible children grow.
Parents of eligible children do not need to take any action to enroll or apply. Eligibility is automatic.
The Connecticut Baby Bonds Trust has already been funded with the full amount necessary to fund investments for 12 years of children.
FREQUENTLY ASKED QUESTIONS
What is ‘CT Baby Bonds’ and why is it important for CT families and communities?
CT Baby Bonds is a long-term investment in Connecticut families and communities. It will address generational poverty by giving families opportunities to build wealth while encouraging young people to stay in state, and investing funds back into the community through homeownership, business creation and more.
How does CT Baby Bonds work?
For every baby whose birth is covered by HUSKY, up to $3,200 is deposited into the CT Baby Bond Trust and invested by the Office of the Treasurer. At age 18, an eligible beneficiary can make a claim for the funds to be used to start or invest in a Connecticut business, buy a home in Connecticut, pay for higher education, or save for retirement.
Who is eligible?
Babies born on or after July 1, 2023, whose birth was covered by HUSKY will be automatically allocated a pro-rata share of the CT Baby Bond Trust.
How do I enroll?
Enrollment is automatic based on the birth’s coverage by HUSKY.
What can the funds be used for?
The funds can be used to pay for higher education expenses or job training, to put towards purchasing a home in Connecticut, to invest in a business in Connecticut, or to save for retirement.
How do I claim my funds?
Between the ages of 18 and 30, beneficiaries may submit a claim for an allowable expense if they are a Connecticut resident and have completed an approved financial literacy course. More information on the claims process will be shared in the future.
What if I move out of state?
Connecticut residency is required to make a claim. However, residency is only required at the time of the claim. For example, if an eligible beneficiary moves out of state at age 10 but is a Connecticut resident when they make their claim, they would be eligible.
What if I or my family is no longer covered by HUSKY?
HUSKY coverage is only required for the birth. There are no other additional coverage requirements for an eligible beneficiary or their family.
What is an approved financial literacy course?
Ways to fulfill the financial literacy requirement, including approved courses, will be shared by the Treasurer in the near future.
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For more information, email baby.bonds@ct.gov or call (860) 702-3010.