Connecticut’s Baby Bonds Program Wins The Bond Buyer 2023 Deal of the Year Award for Innovative Financing
Congratulations to the State of Connecticut, winner of The Bond Buyer’s 2023 Deal of the Year in the category of “Innovative Financing” for Connecticut’s first-in-the-nation “CT Baby Bonds” program, designed to promote social equity by investing directly in children at birth.
As a result of landmark legislation enacted in Connecticut, the charitable “Baby Bonds” Trust will be funded in an amount for every baby born into poverty in the State of Connecticut during each fiscal year. The amounts designated for the beneficiary babies will be invested over an 18-year period, at which time the beneficiary may apply for a grant of the funds for education, to start a business, purchase a home or invest in investment accounts, such as a retirement account.
“After the originally planned $600 million GO bond sale was shelved due to funding concerns, the state substituted an existing bond reserve fund with a surety policy, providing multi-year funding assurance for the program,” The Bond Buyer reported, “fully funding the CT Baby Bonds Trust up front, while maintaining its commitment to existing bondholders.”
The award was presented at The Bond Buyer’s Deal of the Year awards ceremony in New York on December 5.
Pullman & Comley is proud to provide legal support to the Office of the State Treasurer in developing this landmark program. Pullman provided advice on the legislative language for the Baby Bonds program as well as drafting the first-in-the-nation charitable “Baby Bonds” Trust and supporting documentation. We are currently representing the Trustee of the Trust to procure tax exempt status for the Trust with the Internal Revenue Service.
To learn more, view the press release on the website the Connecticut Office of the State Treasurer.