States can do UBI better than the USFG.

The legacy of so-called “welfare reform” and decades of disinvestment have resulted in a social safety net that perpetuates racism and is fundamentally incapable of allowing people to meet their basic needs and live with dignity. It is time to boldly reimagine the social safety net, eliminate deep poverty and provide stability to middle income households by implementing a guaranteed income. Ultimately, a federal program should be vigorously pursued, but a mass movement needs to be built to overcome gridlock at the federal level. States have a vital role to play as leaders in building public policy. Through creation of state-level guaranteed income programs funded through equitably raised revenue, states can progress toward economic justice for their lowest-income residents regardless of employment status, supplement the existing safety net, and build necessary momentum toward a federal program needed to meet current and coming economic challenges. A guaranteed income is a direct and effective strategy to ensure that everyone can meet their basic needs and reduce unconscionable levels of income inequality. However, even wider disparities exist when it comes to wealth. Available data shows that guaranteed income allows people to save money, pursue additional education and training, and improve their employment situation, all of which can increase a household’s opportunity to invest and accumulate wealth, but states should strongly consider wealth building strategies that are more direct to complement a guaranteed income. One such model is baby bonds. The basic idea of a baby bond is that children in eligible families would have an initial deposit placed into a government managed trust that would guarantee growth of the investment until the child turns 18. Upon their 18th birthday, the child is able to access the money – which will have appreciated significantly – and, in most models, is limited to using it for specific purposes such as pursuing higher education, buying a home, or starting a business. However, states could adopt and modify such a policy, remove restrictions on how the money is eventually spent, and pair this asset building strategy with cash transfers like guaranteed income to produce even greater outcomes. In 2021, Connecticut became the first state in the country to pass a statewide baby bond program while state legislators in other states, like New Jersey, Iowa, and Maryland, have also introduced proposals.