Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Inequality topic
No spam. Unsubscribe anytime.
Treasurer backs 'Nevada Baby Bonds' to address generational poverty; proposes modest start-up appropriation
Summary
State Treasurer Zach Conine told the Ways and Means Committee AB 67 would establish baby bonds — $3,200 deposits for Medicaid-covered newborns — invested until age 18, with a small initial appropriation proposed to pilot the program for roughly 1,500 children.
Zach Conine, Nevada’s state treasurer, introduced Assembly Bill 67 to the Assembly Ways and Means Committee as a statewide baby bonds program intended to address generational poverty by placing a modest seed investment in eligible newborns’ accounts.
Conine said AB 67 would house the program within the State Treasury. Under the bill as presented, a child born in Nevada on or after Jan. 1, 2026 whose birth is covered by Medicaid or the Children’s Health Insurance Program (CHIP) would be a designated beneficiary. The Department of Health and Human Services (DHHS) would notify the treasurer’s office, which would invest $3,200 on behalf of each eligible child.
Conine described conservative and higher growth scenarios: at a 6.9% benchmark the investment would grow to roughly $10,635 by age 18; using higher historical returns similar to the Nevada public employee retirement system (8.5%) the assets could reach about $13,895. Claiming would be allowed beginning at age 18 and no later than age 30; recipients must show 12 months’ Nevada residency prior to claiming. Approved uses include postsecondary education and apprenticeships, home purchase, business start or purchase, and investments in financial assets; distributions would be paid directly to third parties for the intended purpose. Conine said recipients would be required to complete a financial literacy course prior to receiving funds.
The treasurer said roughly 42% of births in Nevada are covered by Medicaid — about 13,200 children per year — and that funding every eligible child would cost an estimated $40 million a year. To phase the program in, section 16 proposes a $5 million general fund appropriation to establish baby bonds for about 1,500 children over the next biennium. Conine described the appropriation as a pilot approach to start the program and scale it later.
Committee members asked about confidentiality and outreach. Assemblymember Torres Fawcett raised questions about data-sharing and whether families would be notified; Conine said the bill includes confidentiality provisions and that annual communications would be sent to families to show deposits and growth. Speaker Yeager and other members discussed outreach challenges for beneficiaries who leave the state; Conine said regulatory rules and an online portal could be used to improve notification.
Members asked about administrative costs and tax treatment. Conine said the bill caps administrative expenses at 5% of assets and that a small fiscal note was included; he noted possible federal tax implications and said the office would provide more definitive guidance on taxation. Several organizations testified in support, including the Children’s Advocacy Alliance, Nevada Bankers Association, Northern Nevada Building and Construction Trades Council (which supported inclusion of apprenticeships), Planned Parenthood Votes Nevada, Dignity Health Saint Rose Dominican, Culinary Workers Union Local 226, and NAACP chapter 1111. Opposition testimony urged fiscal caution and criticized universal taxpayer funding for the program.
No committee vote was taken at the hearing. The treasurer asked lawmakers to consider starting small and scaling in a way that produces budget savings over time by reducing long-term costs of poverty, while opponents warned of program cost and administrative risk.
