Most children born in New Jersey would be entitled to receive a $1,000 “baby bond” when they turn 18 under a new proposal introduced Tuesday by Gov. Phil Murphy in a bid to close the state’s wealth gap.
The New Jersey initiative, which must still be approved by the state legislature, would put $1,000 into an account when children are born. The money could not be touched until a child turned 18, and could only be used to pay for certain “wealth-generating activities” such as pursuing higher education, purchasing a home or starting a business.
The bonds, which will start with babies born in 2021, will be given to children in households earning less than 500% of the Federal Poverty Level, or up to $131,000 per year for a family of four. Murphy, a Democrat, estimated that three out of four children in the state would receive the bonds, or roughly 72,000 babies born in 2021.
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