By Holly Foggle and Derrick Hamilton
One of the many groups awaiting the results of the recent presidential election with bated breath were those invested in eradicating childhood poverty. Both parties referenced implementing a version of the expanded Child Tax Credit if elected, a policy that could finally end the shameful prevalence of millions of American children growing up hungry and without their basic needs met in the wealthiest country in the world.
Now that the Trump and Vance administration has taken office, we are eager for them to fulfill their promises of an enhanced Child Tax Credit. To extend this Biden-era enhancement that marked our country’s most powerful tool ever in fighting child poverty would be a fitting result of the aisle-crossing history of the program, which was based on the recommendations more than three decades ago of the bipartisan National Commission on Children.
We urge federal leaders to learn from current successes in this space and heed expert guidance when crafting policies to better support families.
The most recent data in the U.S. shows we are losing the battle against childhood poverty, with a troubling rise in the number of kids who live in households that are struggling to put food on the table and pay for the rising cost of basic expenses like rent. The effects of this are not just on the individuals experiencing what Dr. Martin Luther King Jr. referred to as the “violence of poverty,” but society as a whole with a whopping price tag of $1 trillion in lost productivity and increased costs in areas ranging from health to homelessness.
To finally bring an end to the devastating toll we all bear due to the ongoing childhood poverty crisis, a groundbreaking initiative in Connecticut offers a blueprint for transformative change. By combining guaranteed income with wealth-building strategies, the state is pioneering a comprehensive approach that could revolutionize how we tackle economic inequality and create opportunities for future generations. Winning the fight against childhood poverty is also an issue of racial justice, as children living in poverty are more likely to experience childhood trauma and children of color are overrepresented in the childhood poverty rate.
With the recent launch of The Bridge Project’s guaranteed income program across Connecticut along the state’s existing Baby Bonds initiative, we are witnessing the country’s largest test of pairing income and wealth-building programs. This represents a pivotal moment in the fight against childhood poverty as this dual approach addresses both immediate needs and long-term wealth accumulation, providing a robust foundation for economic mobility.
The Bridge Project is providing 500 pregnant individuals with a guaranteed income totaling more than $20,000 in monthly payments across three years, beginning during pregnancy. The first round of payments began this month. This immediate financial support is crucial for families facing economic hardship, with one in four Connecticut residents unable to meet their basic needs and more than 15,000 babies born into poverty each year. Results from prior cohorts of the program find significant positive impact on families receiving funds, with a 242% increase in savings as well as significant increases in the ability to afford child care and increase food security.
Complementing this income support, Connecticut’s Baby Bonds program, launched last year, invests $3,200 for each baby born into a family covered by Medicaid. By the time these children reach adulthood, their accounts are projected to grow to between $11,000 and $24,000 — a significant sum that can be used for education, homeownership, or entrepreneurship. We are already seeing a bipartisan group of leaders nationwide recognize the potential impact of such a policy, with at least 19 states that have introduced or are considering similar legislation.
The synergy between these short and long-term programs is powerful. While guaranteed income provides immediate relief and stability, baby bonds build generational wealth and expand future opportunities. This combination addresses both the symptoms and root causes of intergenerational poverty. A key commonality of these programs is that neither imposes a work requirement, which has been proven to actually hinder a recipient’s ability to pull themselves out of poverty. Caring for a baby should be a universally accepted moment in one’s life to completely focus on the wellbeing of the child — something that leaders on both sides of the aisle have said is a shared goal.
Research underscores the value of layering support to address root causes of poverty and inequality. Studies have shown that guaranteed income can improve maternal mental health, reduce postpartum depression, and enhance infant brain activity. Meanwhile, wealth-building initiatives like baby bonds have the potential to dramatically narrow the racial wealth gap, with one study suggesting they could shrink the wealth gap between Black and white young adults by more than 90%.
By investing in children from birth, we’re investing in our collective future. It’s been proven that early childhood investments yield the highest returns, both in terms of individual outcomes and societal benefits. By combining income support with wealth-building, we’re not just alleviating immediate hardship — we’re creating a foundation for long-term economic growth and stability.
Beyond the financial, there is a psychological impact of these programs. Knowing that a child has access to both immediate support and future capital can positively influence family planning, aspirations, and decision-making from birth. Having a nest egg to fall back on can supplement growth throughout a child’s development — influencing health, educational, and career outcomes long before the funds are even accessed.
As we look to the future, it’s clear that solving childhood poverty requires bold, bipartisan solutions. Supporters of similar programs are as varied as Richard Nixon and his Family Security Act, which included a version of a guaranteed income; to Sen. Cory Booker and Rep. Ayanna Pressley, who have introduced a federal Baby Bonds policy that would extend the benefits of wealth-building to children born into poverty across the country.
As researchers and funders, we’ll be watching closely to see how Connecticut’s innovative pairing of these income and wealth-building policies unfolds. The lessons learned here could shape the future of anti-poverty efforts across the country, offering hope for a more equitable and prosperous future for American children. It is incumbent upon all of us who wish to see a future in which no child endures the violence of poverty to hold the incoming Trump/Vance administration accountable in delivering on the promise to create more robust programs to protect the health and development of future generations.
