By Gabriela Quintana, Economic Opportunity Institute, and Tracy Yeung, Washington State Budget and Policy Center

Since U.S. Senator Cory Booker and U.S. Representative Ayanna Pressley introduced baby bonds in 2019 to narrow the nation’s racial wealth gap and increase families’ wealth, states like Connecticut and Washington D.C. have passed their own baby bonds legislation. We hope Washington state will be one of the next states to do the same.

During the 2023 legislative session, Washington state lawmakers introduced legislation to create a baby bonds program to support the economic well-being of future generations in our state. The Washington Future Fund, as it is known, would invest $4,000 for every baby enrolled in Apple Health (Washington’s Medicaid program) before their first birthday. Participants can withdraw their funds between the ages of 18 and 35 to pay for postsecondary education, purchase a home, or start a business.

Almost 40,000 babies a year, or nearly half of all babies born in the state, will be eligible to take part in this powerful program.

Our organizations – the Economic Opportunity Institute and the Washington State Budget and Policy Center – have been working alongside community partners, legislators, and Washington State Treasurer Mike Pellicciotti for several years to make this happen. Together, we created the Washington Future Fund Advisory Committee and secured funding for a statewide wealth inequity study in 2022. Concurrently, community partners built a diverse coalition of small business owners, local tribal members, credit unions, labor unions, housing advocates, education advocates, and other nonprofit organizations that stand behind the effort. The coalition works to provide feedback on how the legislation should look, strategize on how to advance the legislation, and create momentum in communities. This has included strategic op-eds in news outlets.

Due to the coalition’s dedication, passion, and hard work in the last several years, the Washington Future Fund has gained momentum with state legislators. Democratic lawmakers Monica Stonier in the House and Yasmin Trudeau in the Senate are sponsoring the bills to pass the Washington Future Fund.

Now, along with coalition partners, we are working to get the Washington Future Fund to the finish line.

During this short legislative session in our state, we want legislators to understand the positive impact this bill will have on Washington communities and Washington’s economy. In particular, legislators need to move beyond a short-sighted hyper-focus on current budget needs. They need to think big for the future of Washingtonians – especially Black, Indigenous, and People of Color who would most benefit from this policy that would help offset longstanding barriers to wealth and opportunity.

Members of the coalition are regularly meeting with elected officials to educate them on the function and intent of baby bonds – and the real impact they will have on the lives of kids and families in Washington state. Equally as important, coalition members are engaging in extensive outreach to other organizations and individuals. We now have a list of over 60 groups and individuals engaged in this effort.

During the 2024 legislative session, the coalition is meeting regularly to strategize legislative action, determine the power structures and influencers, and mobilize communities across the state to advocate for this legislation.

Currently, the Washington Future Fund bills, House Bill 1094 and Senate Bill 5125, sit in the fiscal committees in both chambers.

In this 60-day legislative session, we are calling on the chairs of the Ways and Means and Appropriations committees to hold hearings for the two bills. Giving people a chance to testify and speak out in the push for baby bonds will be an important way to grow momentum.

This will help us grow the public campaign in support of baby bonds throughout the year so we can hit the ground running to get this policy passed once and for all in 2025.

^{(1) Phoebe Flaherty, Marissa Hashizume, Shira Markoff, Doug Ryan, Marc Allen, Rebecca Drachman, Ted Schenider, “Washington Future Fund Wealth Inequities Study,” October 2022.}