by Rose Francois | June 13, 2025

“Our nation is now so rich, so productive, that the continuation of persistent poverty is incendiary because the poor cannot rationalize their deprivation.”

– Dr. Martin Luther King 

In the richest land on Earth, America, there is a great deal of talk about the causes of poverty, childhood hunger, economic injustice, and the racial wealth gap, and their potential solutions. While these important topics are being debated at the highest levels of government, similar conversations are happening at dinner tables right here in Massachusetts.

Massachusetts families are having tough conversations about how to afford a home, pay for college, or simply build a better future for their children.  As the Executive Director of The Midas Collaborative, a nonprofit dedicated to economic mobility and asset-building for low-to moderate-income individuals, I know that access to capital is one of the most powerful tools to address wealth inequality and close the racial wealth gap. 

I remember my parents having these dinner table talks, their voices low so as not to worry my brother and me. I also recall the impact that asset building had on my family’s life and outlook on the future. We had very little, and both of my parents worked two to three jobs. For weeks on end, my brother and I would not see them both at the same time. My parents alternated their hours to ensure one of them could supervise us at any given time, but this left little room for rest. The day they became homeowners, I saw them breathe a little easier, and I learned an important lesson: assets provide you with more options and afford you a layer of financial security. As an adult, I realized that there are more obstacles than tools to help low-income families achieve the American Dream.

Now, costs have skyrocketed, and young adults no longer have the same economic opportunities as previous generations. I wonder what this means for future generations and whether we will rise to the occasion with innovative tools and solutions.

Most of us in the Commonwealth are now familiar with the findings that came out in 2018: The Economic Policy Institute reported that the top 1% of earners in Massachusetts made 31 times more than the bottom 99%, showcasing the state’s extreme income inequality. At the same time, The Color of Wealth in Boston, conducted by the Federal Reserve Bank of Boston, showcased a jaw-dropping racial wealth gap: Black families had a median net worth of just $8, while white families held a median net worth of $247,500. These numbers reflect the deep disparities that communities, especially Black and Brown, faced. 

Now, consider this: According to a 2024 analysis by The Brookings Institution of the Federal Reserve’s Survey of Consumer Finances (1989–2022), by 2022, Black households held just $15 in wealth for every $100 held by white households, highlighting the persistence and growth of the racial wealth gap. The gaps are not closing. 

That’s why the proposed legislation H.48/H.3429/S.2146 An Act establishing a Massachusetts Baby Bonds program is so important. The bill would create a publicly funded trust account for every child born into poverty in Massachusetts. When that child reaches adulthood, they’ll be able to use the funds to build wealth, whether that means buying a home, starting a business, or going to college in Massachusetts. 

Filed by Massachusetts Treasurer Goldberg, Senator Paul Feeney, and Representative Andres Vargas, the bill outlines clear criteria for a Baby Bonds program in Massachusetts, including: 

• To be eligible, children must be under age one and enrolled in TAFDC or in foster care. 
• Funds may be withdrawn for eligible uses when the child is 18-35 years old.  
• Funds may be used for homebuying, postsecondary education, starting or investing in a business, planning for retirement, etc. 

Baby Bonds are not handouts; they are tools designed for hard-working families to unlock potential and build pathways to long-term economic mobility. They are an investment in the future, an investment in people and communities, an opportunity to address systemic inequalities that created a “have and have-nots” society in one of the richest and most equity-minded states in the country. 

In contrast to Baby Bonds, recent bond proposals in the news offer benefits to all children, regardless of need. The effect is a watered-down initiative that fails to target the families most affected by generational poverty. At a time when essential supports like SNAP and housing vouchers are under threat, we must prioritize common-sense tools that close gaps, not widen them.

We are at a unique inflection point in Massachusetts. We have asset-building tools like Baby Bonds within reach, tools that can change the trajectory of a life and truly make an impact. As a state, we must ask ourselves what we stand for and whether we stand for everyone or only the wealthy.

Rose Francois is Executive Director and President of the Midas Collaborative, which works to advance the financial security of low- and moderate-income residents across Massachusetts in collaboration with its member organizations and partners.