Booker reintroduces bill to give all newborns $1k savings accounts, up to $2k more per year

Senator Cory Booker along with Rep. Ayanna Pressley reintroduced a bill Thursday calling for giving all newborns $1,000 savings accounts.

According to their press release “The American Opportunity Accounts Act, also known as “Baby Bonds”, will create a new American birthright–giving every child a fair chance at economic opportunity and mobility. The legislation will create and seed a savings account of $1,000 at birth, with additional deposits of up to $2,000 each year, depending on household income.”

The statement adds “the funds will sit in an interest-bearing account, which can be accessed by account holders at age 18 for allowable uses like buying a home, paying for educational expenses or starting a business.”

Rep. Ayanna Pressley said “the racial wealth gap in my district and across the country is stark and only getting worse, exacerbating inequities and denying far too many people of color an opportunity to thrive.”

“These disparities are the direct result of generations of policy violence exacted against Black and brown communities, so we must be every bit as intentional in advancing policies that center racial and economic justice – policies like Baby Bonds. Baby Bonds are one of the most effective tools at our disposal to help close the racial wealth gap and break generational cycles of poverty. By establishing Baby Bonds, our bill will provide every child an opportunity to pursue higher education, purchase a home, and build wealth for generations to come,” she added.”

Booker tweeted “the wealth gap continues to grow in this country. Baby Bonds can help level the playing field and give every child the ability to create their own future.”