LAS VEGAS (KTNV) — State officials are proposing a new program that could help Nevada families save for the future.
Treasurer Zach Conine has filed a bill that would establish a statewide baby bonds program.
If the bill is passed, the state will invest $3,200 in a bond for each baby born under Medicaid starting on or after January 1, 2024.
That bond would then be managed by the treasurer's office until the child turns 18.
Conine said that by that time, when factoring in interest rates, that account could be worth between $10,000-$14,000.
Beneficiaries will be able to claim those funds until the eligible person turns 30.
The treasurer said the money must also be used for a specific purpose like buying a house, going to college, or starting a business.
The Nevada AFL-CIO said programs like this are important to address the growing wealth gap and help underserved communities.
"When a family already needs to stretch the dollars they earn to simply put food on the table and provide their children basic necessities, they don't necessarily have the resources to think about the long-term future. Around 44% of infants born in Nevada every year are on Medicaid. Just imagine how many lives the proposed Baby Bonds Program could put on a better financial track."
In a meeting last week, Conine said it's also fiscally responsible to help prevent generational poverty through programs like the baby bonds program.
One example he used was the Supplemental Nutrition Assistance Program.
Conine said 249,000 Nevadans receive those benefits and it costs the state $45 million a month or $540 million a year.
He added it costs too much money to deal with the prolonged effects of poverty in the state and that it should be addressed early on.
The idea of a baby bonds program isn't new.
Similar measures have been introduced in California, Delaware, Iowa, New York, New Jersey, Washington and Wisconsin.
