Councilmembers introduced a bill that would create a fund for children born in the county to access when they reach adulthood.
The legislation would establish a fund for the county to allocate $1,800 per child expected to be born that year. Funding would be appropriated annually based on estimated birth rates, according to a policy brief overview.
Lead sponsors are County Councilmembers Will Jawando and Gabe Albornoz. There is “universal eligibility” to cover any child born in the county on or after Jan. 1, 2024, Jawando said.
The funds would be in an interest bearing account over time. Once the child is 18 they can use the fund to support vocational or educational expenses, investment in a local business, purchasing local real estate, or retirement investments.
They can apply for the funds once they turn 18, up until age 36, and they must be a county resident. Disbursements would be based on wealth and income at the time of applying for the funds. The fund would be managed by the county’s finance department and establishes an advisory committee to oversee funding and dispersement. The policy brief states, “The Child Investment Fund Committee will outline the criteria for disbursements to ensure that the adults with the least amount of personal wealth are able to benefit most from the investment fund.”
The fund “will help Montgomery County grow our own future entrepreneurs, home owners, and business leaders while reducing the racial wealth gap and systemic barriers to generational wealth-building,” Jawando said during a council meeting Tuesday.
“I think that we need to take bolds steps. While we are continuing to support both in policy and in budget the needs of our families today, we also have to make sure that we address their needs for tomorrow,” Albornoz said.
Jawando said the county is the first local jurisdiction in Maryland to pursue this kind of program. He said the fund is built on the premise that “every child born in Montgomery County should have the opportunity to build generational wealth” and to use the fund to live, thrive and invest in the county.
In Montgomery County, said Jawando, 2022 data shows the highest 20% of earners took home more than 15 times as much as the lowest 20% of earners.
