Funds the Rhode Island baby bonds trust program without the use of taxpayer dollars through an annual allocation of unclaimed property remittances.

Rhode Island Baby Bonds Funding Bill

This bill proposes a way to fund Rhode Island's "baby bonds" program — a savings program designed to give children from lower-income families a financial head start — without using taxpayer money. Instead of drawing from the state budget, the bill would direct a portion of "unclaimed property" funds toward the program each year. Unclaimed property refers to money or assets (like forgotten bank accounts, uncashed checks, or abandoned safe deposit box contents) that businesses turn over to the state when they cannot locate the rightful owner.

Under this bill, a set amount of those unclaimed property remittances would automatically be allocated to the baby bonds trust program on an annual basis. Baby bonds programs typically work by depositing money into a trust account for eligible newborns, which they can access when they reach adulthood to use for things like education, homeownership, or starting a business. Rhode Island's program generally targets children born into families with lower incomes.

The bill primarily affects children born into qualifying low-income families in Rhode Island, who would benefit from having a savings account established in their name at birth. It also affects how the state manages its unclaimed property funds, redirecting a portion of that money rather than holding it in the general pool. Importantly, since the funding source is unclaimed property rather than the regular state budget, the bill's supporters argue it avoids placing any new financial burden on taxpayers. The bill has been referred to the Senate Finance Committee for further review.