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Interested in Baby Bonds? ECPCA Has You Covered

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Update: July 20, 2022

GRACE Celebrates Groundbreaking $115 Million Investment in HOPE Accounts for Children Orphaned by COVID-19 and Foster Youth!

Governor Gavin Newsom approved the state’s 2022-2023 budget with vital investments secured for over 32,000 children orphaned by COVID and children who are in long-term foster care.

GRACE & End Child Poverty California (ECPCA), John Burton Advocates for Youth (JBAY), End Poverty in California (EPIC), and Liberation in a Generation worked diligently alongside partners and California leaders for the inclusion of HOPE Trust Fund Accounts in the final budget. The Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Act – championed by Senator Nancy Skinner (D-Berkeley) – will lay the foundation for future expansion of child trust accounts, or baby bonds, as a tool to support wealth building and economic opportunity for California children living in poverty. Approximately 1 in 5 children live in poverty in our state. 

HOPE Accounts will support children from low-income families who lost a primary caregiver to COVID-19, as well as children who are in long-term foster care. HOPE funds will be available when a child turns 18. They will allow children to invest in their education, start a business, or support purchasing transportation or housing. Access to wealth-building tools is critical to shrink the state’s persistent racial wealth gap. The budget agreement provides $100 million in one-time funding and $15 million in ongoing funding for the HOPE Account program.

“HOPE Accounts will provide a level of financial protection—of wealth—that allows children in foster care and children orphaned by COVID the ability to seed their futures with dreams instead of worries. HOPE Accounts give young people the power, agency, and dignity to build wealth now and into the future.

Shimica Gaskins, President and CEO at GRACE & End Child Poverty CA

Cody Van Felden, a foster youth advocate at John Burton Advocates for Youth said, “The guarantee of baby bonds means so much to me. I have done so much advocating for this because, as a first step, baby bonds will begin to eradicate generational poverty. I did not get a running start in getting out of poverty; therefore, I must work twice as hard to ensure my daughter does not stay stuck in poverty. Baby bonds will give others like me that running start to take control of their life.”

California has the highest child poverty rate in the country, with stark economic disparities that track along racial lines. Baby bonds work to close the racial wealth gap and end cycles of intergenerational poverty by providing guaranteed capital that recipients can use to build wealth and establish financial security. Providing access to this seed fund of capital directly combats the effects of racist and classist policy choices that created the racial wealth gap in the first place. Baby bonds are an increasingly prominent policy tool for combating the lasting effects of that history and charting a better path forward. In 2021, the state of Connecticut, and Washington, D.C. each enacted similar programs. Additionally, federal proposals have been introduced by Senator Cory Booker and Representative Ayanna Pressley.

Introduction to Baby Bonds & CA’s Hope Accounts

May 19, 2022

One of End Child Poverty California’s key legislative requests during 2022–and a topic that the GRACE team is championing–is the HOPE for Children Act. This request regards the establishment of Hope Accounts for California youth that are experiencing economic insecurity due to the pandemic and also those that have been involved with the child welfare system.

What will Hope Accounts Do? This proposal will create California’s first “baby bond program,” or trust fund accounts for foster youth in long term care and children orphaned by COVID-19.

Unlike their peers, these children–and other low-income California youth–do not have the cushion of parent or family wealth to rely on when they become adults. This makes it even harder for our young adults to finance an education, buy a house, start a business, and make other moves that would allow them to move out of poverty and into long-term financial stability for themselves AND their families.

A Quick Vocabulary Lesson. Wealth is what a person owns: a person’s net worth, or total assets minus liabilities. This includes items like cash, homes and real estate, cars, jewelry, etc. Income is what a person earns over a certain period, like a salary, sales profits, etc. These two are not the same. Income can generate wealth, but takes time to do so. Having a high paying job doesn’t automatically mean someone is wealthy.

Why Are HOPE Accounts Important? HOPE Accounts are a pathway toward ensuring low-income children in California will have the opportunity to realize their dreams. We are urging the Legislature to create these accounts ASAP for 32,500 children orphaned by COVID and foster youth.

A video primer featuring GRACE President & CEO Shimica Gaskins and End Poverty in California founder Michael Tubbs is available here for everyone to watch and share.

Current Status: This budget proposal is championed by Senator Skinner (D-Berkeley) and is a budget priority for the Senate. Sign on here to tell our policymakers that we need HOPE Accounts NOW.

Read our one-pager and policy brief, included below, for more information on both the Hope for Children Act and baby bonds.

UPDATED-HOPE-for-Children-Act-of-2022Download
GRACE-ECPCA-Hope-Accounts-Brief-March-2022Download

GRACE & ECPCA Statement on CA Legislature’s Joint Budget Proposal

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Statement by Shimica Gaskins, President & CEO of GRACE/End Child Poverty CA:

“We are celebrating today’s announcement that the legislature’s latest budget deal includes a $100 million on-going commitment for HOPE accounts. Creating HOPE accounts for the tens of thousands of California children who lost a parent to COVID and long-term foster youth provides targeted support to our state’s most vulnerable children. The creation of HOPE accounts sets California onto a path for a brighter future, as we can proudly say that we are establishing baby bonds while also building a framework the state can build upon to shrink the racial wealth gap in our state and change the trajectory for millions of California children.

“We are grateful to Senator Nancy Skinner for championing the HOPE for Children Act and to our partners, Liberation in a Generation and End Poverty in California (EPIC), for working alongside GRACE & End Child Poverty CA to fight for this critical program to remain in the final budget.

“A budget is a statement of a state’s values, and this commitment to HOPE accounts makes it clear that California values our children. We urge the Governor to move quickly to sign this budget into law to ensure we can make an immediate down payment on our promise to give every child in California a chance to succeed.”

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2020 Wins for the End Child Poverty California Movement

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We want to share End Child Poverty California movement wins from the most recent California budget.

In spite of the fact that this continues to be an incredibly difficult year, we are moving forward together. We’re proud to work with such a phenomenal group of partners, parents and advocates. We believe ALL our children deserve to be healthy, housed and fed.

On June 29, 2020, California’s newest state budget was finalized. For the first time ever, undocumented families are included in the poverty-fighting CalEITC cash-back tax credit.

This means money going directly to working families who have been left out of economic relief and necessary income supports during the COVID-19 pandemic. We know this money will be used in local communities. We know it will support some of our most vulnerable undocumented families who urgently need money for food, bills, and health care.

End Child Poverty California quote box: For the first time ever, undocumented families with young children are included in the poverty-fighting CalEITC cash-back tax credit

The CalEITC tax credit change applies to undocumented families who have children under six, and who file taxes using an Individual Tax Identification Number. These families don’t have Social Security Numbers, but they pay taxes. The change also includes the $1,000 Young Child Tax Credit for any family with children under six earning $1 or more. These changes go into effect next year. For the first time, ALL California families with young children who file taxes and make less than about $30,000 per year will be eligible for these life-saving credits.

We will continue working hard alongside our partners and the CalEITC Coalition and the Safety Net For All Coalition (a network of over 125 organizations) so that more California families can be included in immediate and ongoing relief.

And there is more good news: Both of our End Child Poverty California Senate bills passed out of the State Senate with bipartisan support!

Senate Bill 1103: Workforce Support Services for Californians (Authored by Sen. Melissa Hurtado)

Many promising youth and community members haven’t been able to complete career training programs that lead to higher wage jobs and a path out of poverty, due to the daily challenges of living in poverty. These include lack of child care, commutes of two- to three-hours each way, and the need to work multiple low-wage jobs to support their families while going to training. 

End Child Poverty California Senate Bill 1103 quote from Alma Moreno of Sanger: Many of us have wanted to go back to school but the lack of child care and support makes it very difficult. It’s very difficult to take night classes when you don’t have transportation or resources. We would like to have a brighter future and fight child poverty in California. On behalf of the California Farmworkers Foundation, we strongly support SB 1103.

SB 1103 by Senator Melissa Hurtado (D – Fresno, Kern, Kings and Tulare Counties) creates the High Roads Workforce Training Program that addresses the issues that stop people from graduating. This is an important commitment to families and brighter futures. SB 1103 is particularly important to California’s economic recovery from COVID-19.

Read Alicia’s and Lesly’s stories about why SB 1103 is so important.

Senate Bill 1409: CalEITC Tax Credit Auto-filing Pilot for Families with Low Incomes (Authored by Senator Anna Caballero)

We know that many families earn so little that they are not required to file taxes, yet they are eligible for the CalEITC tax credit and Young Child Tax Credit that would help them with stability and basic necessities. 

SB 1409 authored by Senator Caballero (D – Salinas Valley and parts of the Central Valley) seeks to develop efficiencies in tax filing, so that families can directly receive their CA EITC  and other tax benefits.  Research has shown that as much as $2 Billion State and Federal Tax Credits are left unclaimed.  This bill would cut through bureaucracy and would create methods for direct payments to families.

End Child Poverty California Senate Bill 1409 quote from Senator Anna Caballero: Many of California’s most economically fragile households do not receive CalEITC because they may be unaware they qualify for this critical tax credit or simply do not file a tax return because they earn too little.

This crisis has had an outsized impact on our families in poverty and together we can make sure we change the way we support and create opportunities for families. Looking forward to sharing more good news in support of children and families soon.

More California budget news and analysis from partners:

Help Us Reach 1,500 Signatures!

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In January, California legislators got a visit from parents, children, and #EndChildPovertyCA partners who came to Sacramento with a simple message: We have the solutions to end extreme child poverty — now we need the political champions to join our movement.

Add your voice to ours: Sign our petition TODAY to tell our legislators this is the year to end extreme child poverty in California — and help us reach our NEW 1,500-signature goal!
Parents, children, and partners at the #Together4Kids2020 advocacy event in Sacramento where we sent the message that ALL our kids should be healthy, fed, & housed
In Sacramento, Parent Voices California parent Monique Rosas reminded legislators that California’s child poverty rate isn’t a failure of people — it’s a result of divestment in public systems for communities and families. “Not being able to afford childcare or housing has a lot to do with the broken system, not the people,” she said. “We will continue to fight until our children are housed, fed, and supported in love.” 

We have a chance to repair that broken system this year, and support among our elected leaders is growing. The Governor’s budget already includes three of our five legislative priorities for 2020: These are wins you helped achieve! And now, we’re going all in to tell legislators that it’s time to pass all five.

Will you sign our petition TODAY to help us reach our NEW 1,500-signature goal?
We are so grateful to our partner, the California Alternative Payment Program Association, for organizing #Together4Kids2020, and to dozens of partners like Children Now, California Association of Food Banks, Parent Voices California, Western Center on Law & Poverty, Hayward Promise Neighborhood, Alameda County Community Food Bank, and MORE who showed up with their voices and their signs!

California is the richest place in the nation, with more millionaires and billionaires than any other state. Ending extreme child poverty here isn’t a pipe dream. It’s something we can and will achieve — with the help of our legislators, our partners, and you.

In Solidarity,
Jackie Thu-Huong Wong
Vice President of Policy and Advocacy
End Child Poverty CA

End Child Poverty CA Coalition 2019-2020 Budget Wins

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The final California state budget allocates almost $5 billion toward investments called for in the State Lifting Children and Families Out of Poverty Task Force’s End Child Poverty Plan.

State legislation created the Lifting Children and Families Out of Poverty Task Force to develop an anti-poverty plan that was released just before the new governor and legislature took their oaths of office in January. The End Child Poverty in California Coalition of 50+ partners rallied people, organizations and elected officials to adopt the Task Force’s End Child Poverty Plan, which would end deep child poverty in just four years when fully implemented. The End Child Poverty Plan would also reduce overall child poverty by 50 percent over the next decade.

As a result, the final state budget includes unprecedented investments to address deep child poverty. Furthermore, several pieces of legislation and budget proposals have been introduced to implement the comprehensive End Child Poverty Plan.

“This budget represents an unprecedented strategic investment to address poverty and inequality in California. Make no mistake, however — this is a down payment. Fully funding the Task Force’s plan would end deep child poverty in California in four years, and our campaign will keep working with our elected officials and all Californians to do just that. Thank you to the Governor and the Legislature with leaders on both sides of the aisle and across the political spectrum for their unprecedented action to help kids and families,” said Conway Collis, co-chair of the Lifting Children and Families Out of Poverty Task Force, and CEO of GRACE and End Child Poverty in California.

450,000 California children live in deep child poverty. If concentrated as a population, those children would comprise the state’s eighth largest city — larger than Oakland, twice as large as San Bernardino, and just smaller than Long Beach. When fully realized, savings generated by lifting these children from poverty would total $12 billion annually, on an ongoing basis, representing a dramatic return on investment.

“We could not have done this without the broad-based coalition of anti-poverty advocates, faith-based organizations, non-profits, education advocates, business and labor who worked tirelessly to build support for this important victory. This budget is a reflection of the beginning of a sea change, with ending child poverty in California, as the Governor has stated, his North Star.  We have more to do, but this is a significant step in the right direction and we are looking forward to continuing our work with this coalition, the legislature and the Governor,” said Jackie Thu-Huong Wong, Vice President for Policy and Advocacy at GRACE and End Child Poverty in California.

California has the highest number of children and highest percentage of children living in poverty of any state in the nation — almost 2 million children, who represent one out of every five California kids. Deep poverty is defined as families living at or below 50 percent of the federal poverty line, or less than about $12,500 for a family of four. In addition, 204,000 California children experience homelessness.

Infographic: Key End Child Poverty CA Coalition Budget Wins

Additional CA Budget Information & Reactions

  • State budget analysis from our coalition partner Western Center on Law & Poverty: click here.
  • Budget statement from CalEITC4Me on the California Earned Income Tax Credit expansion: click here.
  • Statement on child care wins from our coalition partners Parent Voices & Child Care Law Center: click here.
  • Article in Vox on the CalEITC expansion in California and its national relevance: click here.
  • Additional information on the End Child Poverty Plan: click here.
    LA Times story on the release of the End Child Poverty Plan: click here.

BREAKING: AB 1520, The Lifting Children and Families Out of Poverty Task Force, Passes CA Legislature without a Dissenting Vote

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Just a day after the U.S. Census Bureau released new numbers that show that California still has the highest rate of child poverty in the nation, California took a groundbreaking step to address the problem by sending AB 1520, the Lifting Children and Families Out of Poverty Task Force, to the Governor’s desk.

“California is a global leader in climate change and progressive politics, yet we have the highest rate of child poverty in the country—almost 2 million children,” said Conway Collis, CEO of the nonprofit GRACE, a sponsor of the bill. “We have a chance to turn that around. Governor Brown now has AB 1520 in his hands, bipartisan legislation that passed the legislature without a dissenting vote, that will take a crucial step towards reducing child poverty in our state.  On behalf of the almost 50 organizations supporting AB 1520 we urge him to sign it.”

AB 1520, the Lifting Children and Families Out of Poverty Task Force, will convene a group of experts from inside and outside of government who will set a framework for California to dramatically reduce its child poverty rate by investing in proven solutions such as voluntary home visiting; high-quality, affordable early childhood education; after-school and summer programs; earned income tax credits for working families; and job training. Learn more here.

Child poverty is a problem that can be solved, and AB 1520 is a critical first step to doing just that.  

For updates and action alerts, join the campaign. 

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AB 1520 Supporters

  • GRACE (sponsor)
  • Alameda County Board of Supervisors
  • Bonnie M. Dumanis San Diego County District Attorney
  • California Alternative Payment Program Association
  • California Catholic Conference
  • California Coverage and Health Initiatives
  • California Legislative Black Caucus
  • California State Parent Teacher Association
  • California Health+ Advocates
  • Catholic Charities of Santa Clara County
  • Children Now
  • Children’s Defense Fund
  • Crystal Stairs
  • First 5 California
  • First AME Church of Los Angeles
  • First Focus Campaign for Children
  • Golden State Opportunity
  • Health Access California
  • Jewish Public Affairs Committee
  • Junior Leagues of CA
  • LA PROMISE
  • Los Angeles Area Chamber of Commerce
  • Los Angeles Promise Neighborhood
  • Los Angeles Urban League
  • Moneta Gardens Community Center
  • Mothers In Action, Inc.
  • National Association of Social Workers, CA Chapter
  • National Foster Youth Institute
  • One For All (OFA)
  • Public Counsel
  • San Diego County District Attorney
  • SHIELDS for families
  • Social Justice Learning Institute
  • South Bay Community Services
  • South Bay Universal Child Development Center
  • St. John’s Well Child & Family Center
  • St. Joseph Center Planting Hope & Growing Lives
  • University of Southern California
  • Western Center on Law and Poverty
  • Youth Policy Institute

AB 1520 Author

Assembly Member Autumn R. Burke

AB 1520 Co-Authors

Assembly Members

Assemblymember Catharine B. Baker (R, District 16)

Assemblymember David Chiu (D, District 17)

Assemblymember Jim Cooper (D, District 9)

Assemblymember Cristina Garcia (D, District 58)

Assemblymember Todd Gloria (D, District 78)

Assemblymember Monique Limón (D, District 37)

Assemblymember Chad Mayes (R, District 42)

Assemblymember Blanca E. Rubio (D, District 48)

Assemblymember Marc Steinorth (R, District 40)

Assemblymember Tony Thurmond (D, District 15)

Senators

Senator Joel Anderson (R, District 38)

Senator Steven Bradford (D, District 35)

State Budget Wins for California Kids

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Governor Jerry Brown just signed the 2017–2018 budget that includes some key wins for California’s children living in poverty:

    • More than one million more households will now be eligible for the California Earned Income Tax Credit (CalEITC), a program that puts money back in the pockets of poor working families. The expansion raises the eligibility threshold to $22,300 for families (that’s a year’s salary working for minimum wage). Read more.
    • Funding for preschool and child care programs will be boosted by $25 million, creating 2,900 more slots. These programs are an excellent investment that provide dividends to families and communities well into the future, and California is leading the way. Read more.
    • Nearly $240 million is included to continue much-needed preschool and childcare provider rate increases. According to the National Association for the Education of Young Children (NAEYC), early childhood educators earn 40% less than other professionals with similar qualifications. Read more.
    • $50 million is allocated to the After School and Education and Safety program (ASES), that provides critical after school programs for children. After-school and summer programs are critical resources for children and working families. Read more.

Thanks to YOU we’ve been able to support these efforts. Together, we can reduce child poverty in our state by 50%.

  • Share this news on Facebook here.
  • Share this news on Twitter here.
  • Add your name to join the movement here.

Photo credit Adobe Stock © Rob 2017

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