The proposed bill establishes the "Rhode Island Baby Bond Trust," which aims to create a financial trust for children born to families enrolled in the Rhode Island Works program. Each designated beneficiary, defined as a child born on or after January 1, 2026, will have $3,000 allocated to their trust upon birth. The trust will be managed by the general treasurer, who will oversee the investment of these funds until the child reaches maturity. Eligible expenditures for the funds include attending higher education or vocational schools, purchasing a home, starting a business in Rhode Island, or other investments that promote long-term financial growth.

The bill outlines the responsibilities of the general treasurer, including the creation of individual accounts for each beneficiary, the investment of trust funds, and the provision of annual statements to beneficiaries regarding their accounts. It specifies that the trust's assets will not be considered personal income for the purpose of state assistance programs, ensuring that beneficiaries can access these funds without jeopardizing their eligibility for other forms of support. The act will take effect upon passage, contingent on the availability of sufficient public or private funding to administer the trust.

Statutes affected:
761: 33-21.1-23