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 continuing education at institutions of higher learning, trade schools, vocational schools, or professional apprenticeship programs in Rhode Island; home ownership in Rhode Island; business ownership with a principal place of business in Rhode Island; or any investment in financial assets or personal capital that provides long-term gains to wages or wealth, as defined by regulation promulgated by the general treasurer.

The bill outlines the responsibilities of the general treasurer, including the creation of individual accounts for each designated beneficiary, the investment of trust funds in a manner consistent with the objectives of the trust, and the provision of annual statements to beneficiaries regarding their account status. It also specifies that the trust's assets will not be considered personal income for the purpose of state or local assistance programs, ensuring that beneficiaries can access their funds without jeopardizing their eligibility for assistance. The act will take effect upon passage, contingent on the availability of sufficient public or private funds to administer the trust.

Statutes affected:
761: 33-21.1-23