Sen. Cory Booker wants to give every newborn in the country a federally funded savings account, Politico reports.
The New Jersey Democrat proposed a bill on Thursday that would give every American child a $1,000 savings account at birth. Every year, additional deposits of up to $2,000 would be made based on household income, according to his plan.
He said the program, which he first floated several years ago, would help narrow the racial gap. Because the “opportunity accounts” in the baby bonds program would gain interest, about 3% annually, he said a child could have up to $50,000 in their account by the time they turn 18. Withdrawals would be permitted once the child turns 18.
"The money can be used for wealth building things - going to college, starting a business, buying a home,” Booker said during an Instagram Live event with Rep. Ayanna Pressley, D-Mass., who backs the bill. “It is an effort to create generations of wealth and the powerful thing about this is that [it] would have an incredible effect to leveling the economic playing field."
When Booker first pitched the concept, it didn’t garner much support from fellow lawmakers. He continued to push the idea during his unsuccessful 2020 presidential run.
Now, he says he has more support from his Senate colleagues and hopes the bill can be passed through the Democrat-controlled Congress. “It was lonely when we introduced it the first time. Now, we have 15 senators, including Majority Leader Chuck Schumer,” he said. “So we're gaining traction and momentum.”
The bill is backed by senators who were all vying for the Democrat presidential nomination in 2020: Kirsten Gillibrand, D-N.Y., Elizabeth Warren, D-Mass., Bernie Sanders, I-Vt., and Amy Klobuchar, D-Minn.
Marisa Herman ✉
Marisa Herman, a Newsmax senior reporter, focuses on major and investigative stories. A University of Florida graduate, she has more than a decade of experience as a reporter for newspapers, magazines, and websites.
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