CT Baby Bonds Turns Two: Over 33,000 Children Now Eligible

07/09/2025

CT Baby Bonds Turns Two: Over 33,000 Children Now Eligible

HARTFORD, CT - The Executive Committee of the Connecticut Baby Bonds Trust met today to mark the second anniversary of the groundbreaking program-the first of its kind in the nation. The committee shared updates on investment performance, outreach, and planning for the CT Baby Bonds program.

Since its launch on July 1, 2023, more than 33,000 children have been enrolled automatically, and the program's total assets under management have grown from an initial investment of $398 million to $485 million.

CT Baby Bonds automatically invests $3,200 on behalf of every baby born in Connecticut whose birth is covered by HUSKY Health, the state's Medicaid program. The funds are invested by the Office of the Treasurer and are projected to grow to between $11,000 and $24,000 by the time each child reaches the ages of 18-30, when they can use the funds to:

• Purchase a home in Connecticut
• Pay for higher education or job training
• Start or invest in a Connecticut-based business
• Contribute to a retirement account

"Our big picture goal for Connecticut is a future of economic security and opportunity for all residents," said Treasurer Russell. "CT Baby Bonds is a piece of that puzzle - meaningful long-term investments in our children and families to help them build a better future for themselves and their communities."

During today's meeting, the committee also discussed the Baby Bonds Ambassador Program, which partners with trusted nonprofit providers to expand awareness and connect Baby Bonds families with additional wraparound services.

In addition, members reviewed a draft Request for Information (RFI) as it seeks a qualified organization to serve as a centralized information and inquiry data management partner. The desired qualifications include demonstrated experience managing sensitive data and large-scale customer relationship management (CRM) systems, as well as expertise in HIPAA compliance and state-level data privacy regulations.

CT Baby Bonds are NOT Trump Accounts

In opening remarks, Treasurer Russell also took a moment to draw a clear distinction between CT Baby Bonds and Trump Accounts. Under a new federal budget provision, Trump Accounts will create $1,000 savings accounts for American babies born during President Trump's second term in office, with optional after-tax contributions up to $5,000 annually from families, employers, or other sources.

"CT Baby Bonds were created to narrow Connecticut's generational wealth gap by investing directly in children from low-income families, whereas Trump Accounts advantage families who already have the ability to save, while leaving behind those who don't," he said. "A wealthy family could build a $150,000 nest egg by the time their child turns 30. Meanwhile, a child from a low-income family is likely to be left with about $2,500. That's not equity-it's a deepening of the wealth divide, and one that will be further exacerbated by federal funding cuts to health care, housing, food assistance, and childcare."

"Symbolic gestures won't fix systemic inequities," said Russell. "What we need-and what Baby Bonds represent-are meaningful investments in the people who need them most."

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About the Office of the Treasurer

The Office of the Treasurer is charged with safeguarding Connecticut's financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state's fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut's social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit: Connecticut Office of the Treasurer Erick Russell.

Contact: Brett Cody
brett.cody@ct.gov | (959) 529-2468