The D.C. Council unanimously approved that creates “baby bonds” for children born into low-income families.
Under the Child Wealth Building Act, every qualifying child would start with a publicly funded trust of $1,000, with contributions of up to $2,000 a year thereafter, depending on their family income. The bill was introduced by Ward 5 Council member Kenyan McDuffie, who said the bonds will help bridge the city’s racial wealth gap.
that, in 2013 and 2014, the average white household in the District had a net worth of $284,000, 81 times the average Black household’s net worth of $3,500.
Once the child turns 18, they’d have access to up to $25,000 to help buy a home or a business, create an investment account for retirement, or pay for education.
Earlier, joined the full Council to pass into law the creation of baby bonds for District children, intro’d by . Aims to close the racial wealth gap by ensuring when a child turns 18, they have money to help them succeed. This is a big deal.
鈥� CM Allen’s Team (@CMCharlesAllen)
The bonds will cost about over the next four years.
The bill goes to Mayor Muriel Bowser for her signature.
