The proposed bill establishes the "Rhode Island Baby Bond Trust" under a new chapter in Title 35 of the General Laws, aimed at providing financial support to children born on or after January 1, 2026, whose parents or guardians are enrolled in the Rhode Island Works program during the first year of the child's life. The trust will be funded through public and private sources, including gifts and grants, and will be managed by the General Treasurer. Key provisions include the trust being a separate entity from the state, ensuring its funds are not commingled with state funds, and that the state has no claims on the trust's assets. The bill also exempts the trust's property and earnings from state taxation, although distributions to beneficiaries will be subject to income tax.

Additionally, the bill introduces a pilot program that allocates a $3,000 trust for each child born to families enrolled in the Rhode Island Works program in the preceding calendar year. The funds will be held and invested by the General Treasurer until the child turns eighteen, at which point eligible beneficiaries can withdraw the funds for specific purposes such as education, home ownership, or business investments. The bill ensures that the funds credited to beneficiaries will not be counted as personal assets for state or local assistance program eligibility. It also redirects a portion of unclaimed property proceeds to the Rhode Island Baby Bond Trust instead of the general fund, and the act is set to take effect on July 1, 2026.

Statutes affected:
6071: 33-21.1-23