Press Release: McDuffie and DC Council One Step Closer to Becoming Second in Nation to Pass Baby Bonds

News Release — Ward 5 DC Council member Kenyan McDuffie

District baby bonds proposal set to codify economic opportunity as a birthright for more District residents.

Grant money supports industry workers and small businesses most impacted by the pandemic.

For Release: Monday, July 19th, 2021

Contact: Malcom Fox

Washington, DC – Today, the Committee of the Whole (COW) released the Fiscal Year 2022 Local Budget Act of 2021, which includes the full funding of $32M for Councilmember McDuffie’s groundbreaking Child Wealth Building Act. The COW budget adds an additional $23M to the $9M already recommended in the Committee on Business and Economic Development’s (CBED) Committee budget report. The FY22 Local Budget Act released today also includes $80M that Councilmember McDuffie requested to provide an additional round of financial support for hotels, restaurants, retailers, as well as entertainment and the arts.

“By providing every eligible low-income child a trust fund at birth, Baby Bonds will help address the District’s stark racial wealth gap,” said Councilmember McDuffie. “This legislation will help thousands of District children build assets that they would otherwise lack when they become adults and want to further their education, put a down payment on a home, or start a business. The budget released by Chairman Mendelson also includes funding that I requested to provide additional and essential financial relief to workers and small businesses most impacted by the pandemic that I have championed for over a year.”

The Child Wealth Building Act codifies economic opportunity for low-income Washingtonians by providing Child Trust Funds of up to $25,000 for babies born into District families living at or below 300% of the federal poverty line, roughly $80,000 for a family of four. Upon turning 18, the child may withdraw the funds to pursue education, buy a home, start a business and invest in financial vehicles.

“Councilmember McDuffie’s Child Wealth Building Act is a great start to equip more people with the resources they need to build wealth and access financial security,” said Dr. Darrick Hamilton, Professor at the New School and Architect of baby bonds. “Centuries of government-sanctioned institutional racism have extracted value from Black Americans while systemically denying wealth building access. Baby bonds address inequities in homeownership, entrepreneurship and education by building a nest egg for people who otherwise lack the capital access to privilege.”

The proposed Fiscal Year Local Budget Act also includes $80M for a second round of economic relief for industries most impacted by the pandemic, including hotels, restaurants, retailers, entertainment venues, and the arts. This funding will enable hotels to rehire, retrain and allow workers to resume full employment while the industry recovers. It will also provide critical assistance to restaurants and small businesses facing a rent crisis as the commercial eviction moratorium is lifted.

Championed by Councilmember McDuffie, today’s Act also allocates $9.8M to fund the Amazon-UDC partnership for a new certificate, associate’s and bachelor’s degree in cloud-based computing services. This investment will provide training in a growing field to ensure more District residents can acquire the skills necessary to excel in today’s job market. Finally, the Local Budget Act includes $5.4M over the four-year financial plan for transitional housing for returning citizens provided by non-profit Jubilee Housing. This funding builds upon Councilmember McDuffie’s continuing work to ensure returning citizens have the resources and opportunities necessary to thrive in the District.

Councilmember McDuffie was pleased to see $35M in benefits for excluded workers who lost their jobs but could not access the District’s various unemployment benefits or compensation. Councilmember McDuffie also appreciates the $8 in funding for school-based mental health resources and the $1.3M for trauma informed mental health services for victims of gun violence. The pandemic and gun violence epidemic have contributed to a uniquely traumatic year for District students and residents, these investments are essential to support them.

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