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Panel Backs Study of ‘Baby Bond’ Accounts, Sponsors Say Study Would Cost Nothing to State Budget
Summary
Delegate Mark Edelson asked the Appropriations Committee to require the state comptroller to study the feasibility of a Maryland baby bond program, with advocates saying such an account could build generational wealth for children born into poverty and that several states are already considering or have adopted similar programs.
Delegate Mark Edelson presented House Bill 753, which would direct the state comptroller to study the feasibility of a baby bond or children’s savings account program for children born in poverty and deliver a report on funding options and implementation choices.
Edelson said baby bonds — state-managed trust accounts for children that mature at adulthood for education, home purchase or entrepreneurship — are intended to close wealth gaps and offered examples of states exploring or adopting similar proposals. “The baby bond program would set up a trust fund for children born in poverty that is funded and managed by the state until the child reaches the age of maturity,” he said.
Policy advocates and philanthropic partners urged a favorable report. Jordan Holden of the Cash Campaign of Maryland urged the committee to study best practices and sustainability; Darius Graham of the Greater Washington Community Foundation described a local pilot, Brilliant Futures, which deposits an initial $1,000 for kindergartners and pays annual supplements through 12th grade. Comptroller representative Matt Dudzik said the office has produced prior reports on baby bonds and has capacity to take on the requested study.
Supporters argued that a study has no immediate fiscal note because it would be conducted within the comptroller’s existing resources. The committee did not record a formal vote during the hearing.
