Today, Massachusetts State Treasurer Deborah B. Goldberg testified before the Joint Committee on Financial Services in support of her office’s proposed Baby Bonds legislation, calling it a critical investment in every child’s future and the state’s long-term economic strength.
Treasurer Goldberg emphasized the positive opportunities that baby bonds will provide. It is a program designed to provide each newborn in the state with a publicly funded trust account, which accrues over time and is accessible when the beneficiary reaches adulthood. Recipients can access their funds and spend it on wealth generating assets (e.g., higher education, buying a home, starting a business, etc.). Investments in young adults can increase access to economic opportunities and help to eliminate intergenerational poverty, studies show.
“Baby Bonds will narrow the racial wealth gap and provide our youngest generation with a foundation for success,” said Treasurer Goldberg. “By investing early in the lives of every child, we can help ensure that more young people enter adulthood with the resources they need to build a stable financial future.”
The concept of Baby Bonds was first developed by economist Dr. Darrick Hamilton, who advanced the idea as a strategy to address structural inequities in wealth accumulation. His work has helped shape national conversations on how publicly funded child trust accounts can promote economic mobility and reduce racial wealth disparities.
“Baby Bonds are not charity—they are investments,” said Hamilton, university professor and Founding Director of the Institute on Race, Power and Political Economy at The New School. “By ensuring every child has a capital foundation, the great state of Massachusetts is taking a powerful step toward an economy grounded in dignity, inclusion, and justice. This policy recognizes that access to wealth and the economic agency that comes along with that wealth requires resources, particularly at a pivotal point when a child reaches adulthood.”
In 2022, Treasurer Goldberg established a Baby Bonds Task Force, a diverse group of experts, advocates, and community leaders, to research and develop recommendations for how a baby bonds program could be most effectively structured and implemented. The task force’s findings have served as a foundation for the Treasurer’s ongoing policy discussions.
During her testimony, Treasurer Goldberg highlighted the need for a fiscally responsible and equitable program that builds on her office’s ongoing economic empowerment work. She stressed the importance of collaboration among state leaders, community organizations, and private partners to create a program that meaningfully supports children and families across Massachusetts.
Beyond the individual benefits, Treasurer Goldberg emphasized that Baby Bonds represent a smart investment in the overall Massachusetts economy. By helping more young adults pursue higher education, start businesses, and become homeowners, the program would stimulate economic growth and strengthen local communities. Research indicates that reducing wealth inequality enhances productivity, innovation, and long-term economic stability, benefiting not only individual families but also the state’s workforce and competitiveness.
Treasurer Goldberg invited the Committee and her fellow policymakers to collaborate with her office to develop a model that is both impactful and operationally feasible, ensuring accountability and strong outcomes for children and families.