Norwich ― State Treasurer Erick Russell said Monday night that a new baby bond program will help address cycles of generational poverty in Connecticut.

“Connecticut is one of the wealthiest states in the country, but we have one of the largest wealth gaps, and it is a gap that has continued to widen over time,” he told a roomful of people gathered for an informational meeting at the Otis Library.

Widening wealth disparities are happening nationwide, and to help with the stark disparity between communities in Connecticut, the state started the CT Baby Bonds program, he said.

Starting July 1, 2023, the state is investing $3,200 in a trust fund on behalf of every baby born into poverty in Connecticut, he said. Every baby whose birth is covered by HUSKY, the state’s Medicaid program, automatically becomes part of the program.

The recipient then can tap into these funds ― an investment expected to increase to $11,000 to $24,000 over time ― once they are between the ages of 18 and 30 to buy a home in Connecticut, start or invest in a Connecticut business, cover post-secondary education or training, or roll the money into a savings account, Russell said.

When it comes time to claim the funds, the individual has to be a Connecticut resident and has to take a financial education course, he said.

At the program’s six-month mark, 7,810 babies were born eligible for baby bonds in Connecticut, including 148 babies in Norwich, 129 in New London, 20 in Ledyard and 10 in Lisbon, he said. The program is expected to reach more than 15,000 babies across the state each year.

He said at the six-month mark, 164 out of the state’s 169 municipalities had children eligible for baby bonds.

He said the program is funded for at least 12 years.

“We’re the first state in the country to pass legislation like this,” said Russell, noting that other states are interested in following Connecticut’s lead.

Russell said the program will have a positive impact when children grow up seeing a future for themselves that’s different than what they may have been exposed to or what they see in their community.

He said there is also a huge economic opportunity for the state as the program is designed so the resources will be reinvested in Connecticut’s communities.

Russell said the program alone isn’t going to solve poverty, but it is a piece to the larger puzzle that includes continuing to invest in education and making housing more affordable.

Maria Matos, vice president of Latinos For Educational Advocacy and Diversity (LEAD), said the group is celebrating because a year ago, it was in the same spot fighting to get the legislation passed.

About 40 people attended the informational forum at Otis Library with Russell, state Sen. Cathy Osten, D-Sprague, state Rep. Kevin Ryan, D-Montville and state Rep. Derell Wilson, D-Norwich, along with LEAD and Mosaic Coalition representatives.

Osten said the program is all about breaking generational poverty.

“I believe that this will really foster a great change and give people an opportunity to dream,” she said.

Russell is visiting municipalities across the state to raise awareness of the program.

Russell and Darrick Hamilton, an economist and founding director of the Institute on Race, Power and Political Economy at The New School, will discuss the program from 10 a.m. to noon on Monday, Feb. 12 at The Red Barn at Mitchell College, 629-A Montauk Avenue, New London.

The Community Foundation of Eastern Connecticut is sponsoring the free event. More information and details on how to register is available at: https://cfect.org/events/ending-child-poverty-in-connecticut-baby-bonds-and-beyondhttps://cfect.org/events/ending-child-poverty-in-connecticut-baby-bonds-and-beyond.

More information on baby bonds is available at babybonds.ct.gov.

k.drelich@theday.com