ANNAPOLIS, Md. — The Maryland Comptroller's Office released a report examining the potential impacts of implementing a state baby bonds program, which would provide $7,000 investments to babies born under Medicaid coverage.
WATCH: Maryland considers $7,000 baby bonds for low-income families
The report presents various investment scenarios estimating how much a baby bond program would impact the state financially and economically.
"What we did in our report is to look at what a program like this needs in terms of an investment to make this work," says Comptroller Brooke Lierman.
Under the proposed program, babies born under Medicaid coverage would receive a $7,000 investment at birth. By age 18, that investment would grow to over $20,000.
"Baby bonds simply are publicly funded trust accounts that are available particularly to those who come from fewer resources to engage with wealth building activities," says David Radclife.
These wealth-building activities include investing in education, starting a local business or buying a home in Maryland.
According to the report, only children in poverty would be eligible for a baby bond. Enrollment and contributions would happen automatically, and the funds would only be available for purchases or investments within Maryland.
"So not only bettering themselves and their families but really bringing that money back into Maryland and increasing our economic activity as well," says Comptroller Lierman.
In recent years, several states have begun creating baby bond programs. Only Connecticut, Washington D.C., California, Vermont and Rhode Island currently have active baby bond programs.
Comptroller Brooke Lierman hopes Maryland will join that list.
"We set up a lot of the ideas and asked a lot of the questions and now many of those questions need to be answered in order to put in legislation," Lierman said.
Lierman said the bonds won't be readily available in the near future since the state still has more research and work to complete before potentially approving the program.
The full document can be read below:
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