Connecticut Treasurer Erick Russell signed documents this week to create the Connecticut Baby Bond Trust.
The Connecticut Baby Bonds program is a first-in-the-nation endeavor that will invest $3,200 for each child whose birth is covered by HUSKY. Those funds will grow over time ”“ but to access the funds as young adults, participants will need to complete a required financial literacy course.
An estimated $11,000 and $24,000 will be available to each participant, depending on when the funds are accessed, and the money can be used to either buy a home in Connecticut, launch or invest in a Connecticut business, pay for education or job training, or put it aside as savings for retirement.
$398 million in funds have been moved into the Trust, which will hold and invest funds for the program. Eligibility for the program began on July 1.
“While the program won”™t pay its first claim for another 18 years, the Trust funded today will protect the investments made on behalf of Connecticut children as they grow over time. As we continue to educate new parents about Connecticut Baby Bonds, and work with leaders across the state to raise awareness for the program, behind-the-scenes work will continue to maximize the return on these investments and the overall impact of the program,” said Russell.
