Vermont launches baby bonds pilot program targeting rural counties

Vermont is taking significant steps toward implementing a pilot program for baby bonds, despite not receiving initial funding. The state legislature has authorized the creation of this pilot, which aims to provide financial support to families and children in need. A dedicated advisory committee has been established to guide the program's design and engage with stakeholders.

The initiative is part of a broader movement, with Vermont joining 10 other pilot programs across the country. These programs are designed to explore the potential benefits of baby bonds, which are intended to help children from low-income families build wealth over time. Vermont officials are actively collaborating with national coalitions to share knowledge and resources as they develop their pilot.

To support the program, Vermont is initiating a fundraising effort through private donations and philanthropy. A draft proposal for fundraising is currently in the works, with hopes of securing the necessary funds soon. The state is also considering an accelerated baby bonds program, which would provide financial support to older students, such as seventh graders or high school seniors, upon their graduation. This approach aims to gather data more quickly to demonstrate the program's effectiveness.

In addition to fundraising, Vermont is partnering with local academic institutions and a national research think tank to evaluate the program's impact. The pilot will focus on the Northeast Kingdom, targeting rural counties with high rates of Medicaid births, where approximately 60% of births are covered by Medicaid.

The baby bonds advisory committee has already held two meetings, with the next scheduled for July. As the program develops, more stakeholder groups will be formed to ensure comprehensive community engagement. This pilot program represents a proactive effort by Vermont to address economic disparities and support families in need, with the potential for broader implications across the state.