Senate Bill 674: Baby Bond Trust Fund

• Establishes a Baby Bond Program Trust Fund administered by the Department of State Treasurer to provide $2,000 initial deposits into individual accounts for eligible infants born on or after January 1, 2024.

• Eligible individuals must be infants born to a parent who is a North Carolina resident (or establishes residency within six months of birth) and live in households with annual income not exceeding 200% of the federal poverty level.

• Account distributions are restricted until age 18, except for qualified tuition expenses; after age 18, funds may be used for postsecondary education, primary residence purchase, qualified business capitalization, or approved financial investments.

• Establishes a six-member Board of Trustees including the State Treasurer (chair), Commissioner of Banks, Secretary of Health and Human Services, and three members appointed by the Governor and General Assembly with investment experience to oversee fund management and investment strategy.

• Appropriates $10,000,000 in nonrecurring funds annually for fiscal years 2023-2025, with program implementation and one-time deposits to begin no later than February 15, 2024.