Cory and Pressley Introduce New Bill to Bridge Racial Wealth Gap

Rep. Ayanna Pressley (D-MA) and Senator Cory Booker (D.N.J) are reintroducing a bill that aims to establish a “baby bonds fund.”

Known as the “American Opportunity Accounts Act,” the so-called “baby-bonds” bill seeks to create a national program that will create a federally-funded savings account for every American child. The bill will create “economic opportunity” for every American child at birth, according to a statement by Congress Ayanna Pressley.

“The ground-breaking bill will create a federally-funded savings account for every American child at birth that will grow each year depending on family income, making economic opportunity a birth right for every American and helps close the racial wealth gap.”

-Senator Cory Booker

The Bill was first introduced by Senator booker in 2019. He reintroduced it in 2021. On both occasions, the proposed bill was never voted on and it was referred back to House Committee.

If the bill is passed and signed by the President, it will empower the Department of Treasury to transfer $1000 to an account for every baby born after Dec 31, 2023. Each family may then receive a maximum of $2000 dollars as additional support and accrue interest until the child is 18 years old.

According to a statement on Cory Booker’s website:

“Senator Cory Booker and Representative Ayanna Pressley today reintroduced the American Opportunity Accounts Act, legislation seeking to create a national program commonly referred to as “Baby Bonds,” with the support of 15 Senators, including Senate Majority Leader Chuck Schumer. This ground-breaking bill will create a federally-funded savings account for every American child at birth that will grow each year depending on family income, making economic opportunity a birth right for every American and helps close the racial wealth gap. Booker and Pressley discussed the re-introduction of the legislation and its growing momentum in an Instagram Live this morning. The American Opportunity Accounts Act, also known as “Baby Bonds”, will create a new American birth right–giving every child a fair chance at economic opportunity and mobility. The legislation will create and seed a savings account of $1,000 at birth, with additional deposits of up to $2,000 each year depending on household income.”