5 Lessons for Designing and Implementing Baby Bonds Programs

Child Trends collaborated with PCA, Prosperity Works, and the University of New Mexico’s Cradle to Career Policy Institute on this evaluation, which aimed to learn how to best support Baby Bonds legislation and implementation in New Mexico. Researchers from the partnership teams interviewed 19 key stakeholders connected to or knowledgeable about Baby Bonds programs. Below, we share five key takeaways, which offer insights for both New Mexico and other states interested in designing legislation or implementing and evaluating Baby Bonds programs across the country.

Baby Bonds program goals and eligibility requirements vary nationally and greatly inform programs’ design and implementation. Indeed, interview respondents identified eligibility criteria as a key factor impacting program design and implementation. For example, whether a program has universal eligibility or focuses on key communities, such as specific age groups, plays a role in how it is designed, communicated about, and evaluated. Many stakeholders shared feedback related to specific eligibility criteria. For example, some policymakers noted that tying Baby Bonds eligibility to participation in state programs such as Medicaid can simplify implementation, while also observing that linkages to state-funded programs could prove challenging if eligibility criteria for Medicaid or other programs change (e.g., in response to federal funding shifts). In light of their own positive experiences, New Mexico families participating in a child development account program similar to Baby Bonds shared their hopes for universal eligibility criteria to allow all children in the state to participate.

Multiple national and New Mexico stakeholders highlighted the importance of Baby Bond pilot programs for shaping future state and national programs. There are currently 10 Baby Bonds pilots across the United States, each with varied goals, design, and implementation processes. These pilots may help decision makers and implementers better identify key implementation considerations and understand possible program outcomes. Pilot programs may also guide identification and development of evaluation measures to assess the degree to which Baby Bonds programs effectively decrease poverty and catalyze wealth-building activities.

Many stakeholders emphasized that partnerships and coalitions are integral for advancing Baby Bonds legislation and supporting implementation. One state stakeholder shared how partnerships with organizations that serve different constituencies (e.g., business associations, child advocacy organizations, caucuses for specific racial or ethnic populations) allowed them to gain more widespread support for the program and secure funding. Similarly, another stakeholder noted that strong partnerships help form a broad base of support—useful for weathering potential challenges: “If you’ve got that coalition of folks who were built in and brought in, awareness-wise, [on] why Baby Bonds matter for [the state] from the get-go, I think that helps win it and then protect it when the eventual threats come.” Further, stakeholders from one state described working with a robust team of partners to support implementation, particularly to engage community organizations and support program enrollment.

Stakeholders also viewed external communication about Baby Bonds programs as crucial to securing the passage of funding legislation. Most agreed that communication efforts should be tailored to specific audiences (e.g., business associations, community health organizations) with different priorities and potential concerns. Once programs are funded, stakeholders recommended ongoing and intentional communication efforts to keep key constituents—as well as the public—updated about program progress and milestones.

Interviewees also shared that successful implementation of a Baby Bonds program requires clear communication with families from the time of their recruitment into the program through disbursement of funds. This communication involves regular touchpoints to answer families’ questions and keep them connected to the program, which, in turn, facilitates children’s ability to access funds at age 18.

Many families and stakeholders believed that participation in a Baby Bonds program may improve outcomes for families and children, including reduced parental stress, earlier knowledge of financial habits and responsibility, and decreased poverty. However, other stakeholders felt that Baby Bonds may be most successful when implemented alongside other initiatives such as cash assistance for immediate needs and maternal mental health supports. Some suggested that including Baby Bonds as part of a continuum of programs for families might address two common critiques: 1) Baby Bonds take resources away from other programs that could address immediate needs; and 2) outcomes for children and/or families connected to the Baby Bonds program may not be evident for many years.

While Baby Bonds programs are fairly novel, pilot program learnings can shape their future nationally. The takeaways offered in this blog—regarding eligibility criteria, pilots, partnerships, communication, and integration with other programs—are important building blocks for those interested in implementing Baby Bonds programs. They also have implications for evaluation, particularly in assessing how program implementation occurs and how children and families are impacted early on. As Baby Bonds programs continue to expand across the country, learnings from pilot programs coupled with short- and longer-term evaluations will increase our understanding of immediate and more distal program effects (e.g., impacts on poverty and wealth).