So this is an interesting one. It’s called the American Opportunity Accounts Act and it’s a stimulus bill that’s currently being floated in Congress. The purpose of the bill is to help bridge the wealth gap by starting a savings account in the name of every newborn American baby, known as “Baby Bonds”.
The account would get at least $1,000. More if you’re poor. “Depending on the wealth of your family, every child will get a deposit annually up to [age] 18 into that account, upwards of $2,000 for the lowest income children,” Senator Cory Booker, D-N.J., told CNBC.
With annual payments, in the lowest income families that child could have nearly $50,000 in that account when they turn 18. If their parents are well-off that amount would be more like $1,600.
According to the bill, at age 18, baby bond recipients would only be able to use the funds for wealth-building activities, including buying a home, continuing education or starting a business.
Despite being 30% of our population, Black & Latinx households own just 7.5% of our country's wealth while white households now own over 85%. We can virtually close this racial wealth gap is with Baby Bonds featured in my American Opportunity Accounts Act. https://t.co/pg7pIs2d61— Sen. Cory Booker (@SenBooker) July 8, 2020
Elsewhere in the news, here’s some photos of that building that collapsed in Miami last night: