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: (1) continuing education at institutions of higher learning, trade schools, vocational schools, or professional apprenticeship programs in Rhode Island; (2) ownership of a home in Rhode Island; (3) ownership of a business with a principal place of business in Rhode Island; or (4) 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 receipt, maintenance, administration, and disbursement of trust funds. The general treasurer is also tasked with creating individual accounts for each designated beneficiary, investing trust funds, and providing annual statements to beneficiaries regarding their accounts. Additionally, the bill specifies that the trust's assets will not be considered personal income for the purpose of determining eligibility for state or local 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 upon the availability of sufficient public or private funding to administer the trust.

Statutes affected:
6071: 33-21.1-23