California OKs ‘baby bonds’ to help combat child poverty

July 22, 2022

State Sen. Nancy Skinner, a Democrat from Berkeley and chair of the Senate Budget Committee, said lawmakers will closely watch the COVID survivor bond program to see how it works.

“The great irony of California especially, but the nation as a whole, is we have such wealth but it’s so concentrated,” Skinner said. “Whatever we can do that can address that income inequality is essential to do.”

The state treasurer’s office will manage the money in interest-bearing accounts. Once the recipients become adults, they can spend the money however they want. But advocates hope they’ll use it for things like a down payment for a house, college tuition or a car.

 

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