Legislation introduced in Massachusetts aims to reduce the racial wealth gap by creating a statewide "Baby Bonds" program.

It is a publicly-funded, pooled trust fund for newborn children in low-income households without inherited wealth or opportunities to build it.

Deb Goldberg, state treasurer, said the child can access the funds once they turn 18 to help them go to college, start a business or even buy a home.

"They are a way to level the playing field and give every child a chance to achieve their full potential," Goldberg explained.

A 2015 Federal Reserve study found in the greater Boston area alone, the median net worth for white households was nearly $250,000, and for Black households, it was just $8.

Advocates for low-income families say "baby bonds" are part of a holistic approach needed to help eliminate the racial wealth divide.

Joe Diamond, executive director of the Massachusetts Association for Community Action, a coalition of more than 20 community action agencies in the Commonwealth, said expanded tax credits, a higher minimum wage, and financial literacy courses in schools can all help address the structural challenges of poverty.

"What the 'baby bonds' program does is, it sort of expands the effect of those public policies and helps eligible low-income children and their families really begin to plan for a hopeful future," Diamond emphasized.

Studies show improving families' economic stability is also good for the economy.

The Massachusetts Taxpayers Association finds the gross state product would increase by roughly $25 billion over five years if the state eliminated the racial gaps in wages, housing and investments. Similar "baby bond" programs are already in place in Connecticut, California and Washington, D.C.

Wisconsin is among the states where guaranteed-income programs have been tested.

A new report says, despite controversy, similar efforts are useful in helping struggling households land on firmer financial ground.

The city of Madison gained attention for a program that ran from 2022 to 2023, where eligible households received $500 in monthly payments.

Elsewhere in the U.S, the nonprofit Up-Together has helped cities facilitate payments that come with no strings attached.

The group's Director of Media Relations Rachel Barnhart said last year, they helped 26.000 families access $18 million in unrestricted cash. Based on their outreach, all of it was spent on basic necessities.

"Like housing, food, utilities, transportation, child care," said Barnhart.

She said respondents note the assistance has improved their mental well-being, while allowing some to enroll their kids in after-school activities.

There has been pushback, with skeptics arguing these programs discourage people from working.

Even though Madison's effort was privately funded, Republican lawmakers in Wisconsin sought to prohibit taxpayer funding of these initiatives. The bill was vetoed.

Barnhart said in addition to their own surveys, her group is working with researchers to convey the effectiveness of this aid amid some of the resistance.

She said a key example from Texas shows how important the payments are during an escalating housing crisis.

"What the Urban Institute found in Austin," said Barnhart, "was a majority of the cash payments was spent on housing, and we saw an increase in housing stability. "

She suggested a growing patchwork of these payments would serve as a shield against evictions as tenants struggle with skyrocketing rents.

There are longstanding forms of cash assistance, like the federal Temporary Assistance for Needy Families program.

But those come with more requirements, and Barnhart argued there's an uneven approach among states to distribute the aid to recipients.




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Gov. Janet Mills has signed legislation to increase temporary assistance payments to families experiencing deep poverty.

Payments will increase by 20%, meaning a single-parent family of three will now receive nearly $870 per month.

Ann Danforth, policy advocate with Maine Equal Justice, said the aid will help families get beyond just surviving.

"It enables parents to be able to have child care, to go to work," said Danforth, "and enables kids to grow up in strong families, where they are then able to participate in the workforce, too."

Nearly one in eight Maine children live in poverty. The bill passed both chambers with unanimous support, signaling what Danforth said is a greater understanding that poverty impacts us all.

Childhood poverty in the United States was cut nearly in half during the COVID-19 pandemic, as expanded federal and state tax credits put cash in parents' pockets to help cover their basic needs.

Danforth said Maine lawmakers heard testimony from families utilizing these rebates and temporary aid, providing them with direction on what policies work best.

"All of the research and data from these policies reinforce what people with low income tell us," said Danforth, "which is that when we give people the resources and supports they need and trust them to do what's best for themselves and their families, we all win."

Danforth said she'd like to see a renewed expansion of the federal Child Tax Credit and further consideration of direct cash payments in Maine.

She said these policies not only help families pay for rent and food but help lift the constant stress that comes with poverty, giving parents time to plan for the future.




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Arkansas is taking critical steps to address its high maternal mortality rate, especially among women of color.

In the Natural State, Black women are three times as likely to die from pregnancy-related causes than are white women.

Angela Duran, executive director with Excel by Eight, partners with families and communities to improve health and education outcomes for children up to age eight.

She said that as a result of focus groups and surveys, her organization has developed a new policy agenda that prioritizes maternal health.

"We are looking at is making sure that women have the right health insurance to cover them from prenatal to birth to postpartum," said Duran. "We have met some amazing doulas in the state of Arkansas, who have been very supportive to women, particularly some African American doulas, and been working with Black women around the state."

Duran said Arkansas now offers insurance to women up to 138% of the federal poverty level as a result of the Medicaid expansion.

She added that women at higher incomes can also access health insurance with low or no premiums, co-pays and deductibles.

Duran commended Gov. Sarah Huckabee Sanders' signing the executive order to address maternal mortality and increase access to doulas and various forms of health insurance.

Arkansas has a maternal mortality rate of approximately 44 deaths per 100-thousand live births.

Duran said her group's policy objective centers on examining populations that face disenfranchisement from systems for various reasons, hindering their ability to navigate existing structures effectively.

"In addition to maternal health, knowing that it has a stronger impact on Black women, we look at ALICE families - which stands for Asset-Limited Income Constrained and Employed," said Duran. "So, it's people that are working, doing the right thing, and still don't have enough income to meet their basic expenses."

Duran added that a prenatal care model called Centering Pregnancy helps to improves outcomes for Black and white women.

The University of Arkansas for Medical Sciences is launching a mobile version to reach underserved communities. It creates support groups for expectant mothers at similar stages.




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