Connecticut Baby Bonds

Program Description:

CT Baby Bonds is a first-in-the-nation program that automatically invests funds on behalf of every baby born in the state of Connecticut on or after July 1, 2023, whose birth is covered by Medicaid. Each eligible child has $3,200 invested on their behalf in a trust managed by the Office of the Treasurer. The treasurer’s office holds the money in trust until the child turns 18, at which point the bonds are expected to grow to between $10,000 to $24,000, depending on when they are used. The funds are tax-exempt and can be used for specific purposes designed to grow wealth and contribute to economic mobility. 

Early, proactive family engagement is a core element of the program and central to its success, with additional community services and outreach efforts planned as children age. Once they reach age 18 and have completed a financial literacy course, beneficiaries can file a claim to access their funds for any of the allowable purposes.  

Impact:

The program was passed in 2021, and came into effect on July 1, 2023. It is expected that about 16,000 children will qualify each year and the Trust is currently funded to cover 12 years of the program. In the time since Connecticut first passed the Baby Bonds program, nearly a dozen pilot projects modeled after Connecticut’s Baby Bonds have become active in several states.  
While this program invests in all children born into poverty regardless of race, experts hope that it will help close the racial wealth gap in Connecticut, where Black and Latino children are disproportionately likely to be born into poverty. The program is also expected to increase local economic activity across the state as residents are incentivized to remain in Connecticut to use their funds for entrepreneurship, higher education, and homeownership. 

Population Served:

All children born in Connecticut on or after July 1, 2023, whose births are covered by Husky Health (the state’s Medicaid program). 

Key Steps for Implementation:

• The program was passed by the legislature in 2021 and is administered by the State Treasurer.
• It came into effect on July 1, 2023.
• Outreach and communication is critical and is most effective when coordinated with trusted community partners.
• The Connecticut Baby Bond Trust Executive Committee meets semiannually to monitor progress and suggest updates to program administration. 

Learn more here. 

Page last updated in August 2026