By Brooke Lierman | December 2025

When I ran for Comptroller in 2022, I explained that my core fundamental value is that I believe we all do better when we all do better. To that end, I set a new vision for the office of the Comptroller: to work in partnership to create a state that is more equitable, resilient, and prosperous so that every Marylander can reach their full potential. Baby Bonds are a powerful public policy tool that can help us realize this vision.

Here’s how it could work: The state allocates a $7,000 seed investment for every child born into poverty, “earmarked” for wealth-building purposes. By age 30, with returns matching our state pension system, this initial down payment grows to $50,000—enough for a down payment on a home, tuition for college, or capital to start a business. But the magic of this program starts even earlier. Research shows that just knowing these resources exist can transform families. Parents gain hope, children thrive emotionally, and college attendance rises, all before a single dollar is spent. This is the promise of a statewide Baby Bonds program.

This wealth gap and the shape of our economy is the legacy of decades of government policies that picked winners and losers through redlining, discriminatory tax structures, and exclusionary programs. Government played a role in creating this problem, and now, government must be part of the solution.

Most public benefit programs help residents meet immediate needs. Baby Bonds, on the other hand, help people build wealth and establish (likely for the first time) a capital foundation that can spur economic mobility. The current approach—boosting incomes—is not enough: while wages grew 30% between 1989 and 2018, the stock market grew 400%. Holding assets that appreciate — like stocks,
homes, and businesses — is transformational but requires savings or existing wealth. Currently, 39% of Marylanders are unable to cover basic expenses like utilities and prescriptions, so saving is virtually impossible.

The wealth gap isn’t just troubling—it’s a crisis that threatens Maryland’s future economic stability. Nationally, compared to the wealth held by white households, Black households hold just 15% that amount, while Latino households hold 20%. We’re living in what many economists call a K-shaped economy, where wealthier households continue to thrive while others are falling further and further behind. This wealth gap and the shape of our economy is the legacy of decades of government policies that picked winners and losers through redlining, discriminatory tax structures, and exclusionary programs. Government played a role in creating this problem, and now, government must be part of the solution.

The cost of government inaction compounds every year. Maryland currently spends $6 billion annually on Medicaid alone, supporting approximately 600,000 residents. SNAP, TANF, and housing assistance are vital programs that grow in size as more families remain trapped in poverty. Our state budget strains under the weight. And there’s more that we don’t even see on the ledger, such as the lost tax revenue from families who never start businesses, never buy homes, and never build the wealth that generates income and sales taxes. The cycle of poverty repeats, generation after generation.

If we continue on this trajectory, we’re not just failing morally, we’re also failing fiscally and financially. Every child born on Medicaid has very limited opportunities for upward economic mobility; research shows that they are likely to remain in poverty and need state support as an adult. Their children will face the same barriers. The costs multiply across decades while our tax base shrinks. This is unsustainable.

Baby Bonds could break this cycle. For $113 million per year, we could seed all 30,000 babies born under Medicaid coverage in Maryland in a Baby Bonds program with an initial investment of $7,000. The initial investment will grow into economic empowerment as recipients reach adulthood and buy homes in Maryland, creating property tax revenue and spurring construction and real estate activity. They can start businesses that employ other Marylanders and generate income taxes. They can pursue higher education, increasing their lifetime earning potential and tax contributions. They can build wealth that they pass on to their children, finally disrupting generational poverty.

One unique and powerful component of a Baby Bonds program is that every dollar invested stays in Maryland, recirculating through our economy. Demand for safety net programs declines as families achieve self-sufficiency. The racial wealth gap begins to narrow within a generation. We can transform Maryland from a state where your zip code determines your destiny into one where every
child has a genuine shot at prosperity.

Baby Bonds are a targeted intervention that addresses structural inequality while strengthening our fiscal foundation. They will generate returns that dwarf the initial investment through increased economic participation, reduced reliance on state programs, and the compounding effects of families building generational wealth.

Maryland can lead the nation in proving that smart, equitable policy isn’t just compassionate—it’s the most fiscally-responsible choice we can make. Baby Bonds would transform individual lives, close wealth gaps that have persisted for generations, and change trajectories for families – but it would also have an enormous positive impact on our financial and revenue structure as well, as we built a new, secure middle class.

It’s time to make Maryland better for all of us. Administering a statewide Baby Bonds program won’t be easy, but I am ready to be part of the solution and am eager to leverage the tools and expertise of the Comptroller’s office to make this promising policy intervention a reality.