Rhode IslandH60712025 Regular SessionHouseWALLET

AN ACT RELATING TO PUBLIC FINANCE -- RHODE ISLAND BABY BOND TRUST .

Sponsored By: Joshua J. Giraldo (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Baby bonds protect families' benefit eligibility

Beginning July 1, 2026, baby bond deposits and growth do not count as assets or income for state or local assistance. This protection includes disability, medical, health, and student loan or grant programs. Federal law can require a different result. Families must still meet each assistance program's other eligibility rules.

$3,000 for eligible kids, with limits

Beginning July 1, 2026, Rhode Island creates a baby bond pilot with a one-time $3,000 account allocation per eligible child. Children must be born on or after January 1, 2026. A parent or guardian must be enrolled in Rhode Island Works within the child's first 12 months. Each account receives a share of net investment earnings. Beneficiaries can claim funds starting at age 18, after living in Rhode Island for the two years before payment. Claims must be submitted before age 35. Approved uses include Rhode Island education and training, a Rhode Island home, or ownership of a Rhode Island-based business. Other investments that build long-term wages or wealth qualify under rules set by the Treasurer. The Treasurer must approve the expense before paying. The balance returns to the state general fund if the child dies before 18, misses the claim deadline, or is not a Rhode Island resident at 35. Unclaimed-property transfers fund the initial allocations; the funding administrator may deduct allowed costs and must keep a $100,000 claims reserve. The Treasurer manages the separate trust and sends annual statements with balances, growth estimates, and financial education resources.

Kids' bonds grow tax-exempt; payouts taxable

Beginning July 1, 2026, Rhode Island and local governments do not tax baby bond trust property or earnings. Payments to beneficiaries count as income for Rhode Island personal income taxes. Payments are also subject to applicable federal and state tax withholding. The final tax bill depends on the payment and applicable tax rules.

Sponsors & Cosponsors

Sponsor

Joshua J. Giraldo
Democratic • House

Cosponsors

Karen Alzate
Democratic • House
Grace Diaz
Democratic • House
Leonela Felix
Democratic • House
Rebecca M. Kislak
Democratic • House
Brandon C. Potter
Democratic • House
Joseph J. Solomon, Jr.
Democratic • House
Jennifer A. Stewart
Democratic • House
Teresa A. Tanzi
Democratic • House
Brandon T. Voas
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 96 • No: 8

House vote • 6/20/2025

RHODE ISLAND BABY BOND TRUST PASSAGE

Yes: 62 • No: 7

Senate vote • 6/20/2025

RELATING TO PUBLIC FINANCE -- RHODE ISLAND BABY BOND TRUST In Concurrence Passage

Yes: 34 • No: 1

Actions Timeline

Signed by Governor — Chapter 399
7/2/2025Governor
Transmitted to Governor
6/27/2025Governor
Senate passed Sub A in concurrence
6/20/2025Senate
Placed on Senate Calendar (06/20/2025)
6/20/2025Senate
House passed Sub A
6/20/2025House
Placed on House Calendar (06/20/2025)
6/18/2025House
Committee recommends passage of Sub A
6/18/2025
Proposed Substitute
6/16/2025
Scheduled for consideration (06/18/2025)
6/16/2025
Committee recommended measure be held for further study
4/24/2025
Scheduled for hearing and/or consideration (04/24/2025)
4/18/2025
Introduced, referred to House Finance
3/12/2025House

Bill Text

H6071 - As Introduced
3/12/2025
HTML PDF
H6071 - Substitute
3/12/2025
HTML PDF

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