Favorable
Committee: Appropriations
HB0753
The Maryland Catholic Conference (MCC) is the public policy representative of the three (arch)dioceses serving Maryland, which together encompass over one million Marylanders. Statewide, their parishes, schools, hospitals, and numerous charities combine to form our state’s second largest social service provider network, behind only our state government.
House Bill 753 requires the Comptroller to conduct a study and report to the Governor and General Assembly on or before June 1, 2026, on the feasibility of a State baby bond account program.
A baby bond program—a government-funded trust established at birth and managed until adulthood—offers a powerful opportunity to help families welcome life without financial barriers influencing their decision to have children. By providing every 18-year-old recipient with funds for wealth-building activities such as higher education, homeownership, or entrepreneurship, this initiative could break cycles of generational poverty and foster long-term economic stability. This legislation seeks to study the fiscal impact and feasibility of a baby bond program in our state. Many young adults today struggle to afford rising housing costs and education expenses, leaving them financially unprepared for key life milestones. By reducing socioeconomic barriers and ensuring that every child has a financial foundation that grows with them, this initiative could help address wealth disparities and promote economic opportunity for all.
As a society, we are called to serve our neighbors and build a just community by addressing poverty and ensuring every child has the opportunity to thrive. A study on baby bonds could provide valuable insight into whether such a program would effectively reduce financial insecurity and empower future generations. Estimates suggest that by age 18, the average baby bond account balance could be $26,000 for Black recipients, $27,000 for Hispanic recipients, and $18,000 for white recipients—a meaningful step toward closing wealth gaps and fostering economic equity. (1)
For these reasons, the Maryland Catholic Conference asks for a favorable report on HB 753. Thank you for your consideration.
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(1) https://www.urban.org/research/publication/modeling-impact-federal-baby-bonds-program#:~:text=Baby%20bonds%E2%80%94trusts%20set%20up,building%20activities%2C%20such%20as%20attending