U.S. Sen. Cory Booker (D-Newark) wants baby bonds included in the next stimulus package.
“By investing in Baby Bonds, along with critical income support measures like rental assistance, SNAP, and the child tax credit, we can ensure that struggling families not only weather this economic crisis, but also have the resources to bounce back from future ones as well,” Booker and Rep. Ayanna Pressley (D-Mass.) wrote in a letter to President-elect Joe Biden and Vice President-elect Kamala Harris.
The policy, a version of which Gov. Phil Murphy unsuccessfully pushed to enact at the state level last year, would deposit $1,000 into an interest-bearing account for every child. Those funds would be supplemented by up to $2,000, pegged to family income, in following years.
The move is a bid to reduce racial wealth gaps and increase access to higher education and provide poorer Americans with more opportunities to start businesses.
“The impact would be transformative: at a cost of approximately $60 billion annually, less than 10 percent of what we currently spend to subsidize wealth-building through the tax code, we can give every American a stake in our economy and agency over their future,” Booker and Pressley said.