Res 0893-2025

Whereas, The United States' history and legal frameworks have perpetuated profound disparities in wealth accumulation; and Whereas, Generations of public policy-ranging from housing and education to taxation-have subsidized the richest households and entrenched an extraordinary wealth gap, particularly by race; and Whereas, According to a 2020 report by the Brookings Institute, the wealth gap between the wealthiest Americans and the middle class has increased dramatically over the past 50 years: in 1963, families near the top had six times the wealth of families in the middle; by 2016, they had twelve times as much; and Whereas, The report also stated that in 2016 the median Black family had approximately $17,000 in wealth, compared to about $170,000 for the median White family; and Whereas, New York City is home to one of the most racially and economically diverse populations in the nation and has one of the highest levels of income inequality of any city in the country; and Whereas, Children and youth in New York City's foster care system are disproportionately Black and Brown and often face compounded barriers to financial security, including disrupted education, housing instability, and limited familial support; and Whereas, Assembly Bill A.7415, sponsored by New York State Assembly Member Khaleel Anderson, would create a pilot baby bond program under the New York City Administration for Children's Services (ACS) specifically for foster youth aged 8 to 18 from low-income households with a statistically low likelihood of adoption and limited familial support, who are not in the custody of a relative; and Whereas, Under the bill, each participating youth would receive a one-time deposit into an annuity investment fund-$1,000 for children aged 8-11, $5,000 for those aged 12-14, and $10,000 for those aged 14-17-along with ongoing monthly contributions of $100 until the youth reaches the age of 25; and Whereas, These annuity funds, also referred to as "baby bonds," would accrue wealth over time but could not be accessed or distributed until they reach maturity, providing participating youth with a meaningful financial asset to support their transition to adulthood; and Whereas, A total of 1,500 children and teens would participate in this pilot, which would be implemented by a nonprofit organization contracted by ACS; and Whereas, Research from the Urban Institute has shown that baby bonds are a promising, evidence-based policy for reducing racial wealth disparities, with three major simulations estimating that baby bonds could reduce the Black-White wealth gap by more than half; and Whereas, Baby bonds provide a powerful tool to address both racial and economic wealth inequities by giving young people-particularly those systematically excluded from wealth-building opportunities-a foundation for financial stability and long-term success; now, therefore, be it Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, A.7415 and a Senate companion bill, establishing a baby bond pilot program for foster youth. EA LS 19388 5/8/2025