What’s Happening?
Imagine this: Your tax dollars being used to create special savings accounts for babies born to low-income families. That’s exactly what Nevada lawmakers are planning with Assembly Bill 67, the “Nevada Baby Bonds Program.”
If passed, this bill would give $3,200 to each baby born to families on Medicaid or the Children’s Health Insurance Program starting in 2026. The money would sit in a government-managed trust fund until the child turns 18.
Many fiscal conservatives argue that this represents yet another attempt by government to solve problems simply by spending more taxpayer money. The core question is whether creating another permanent program is the right approach.
Why This Matters to Conservatives
As a limited government supporter, you should care about this for several reasons:
- It’s using $5 million of taxpayer money to start the program, with more likely needed in the future.
- It creates a whole new government program that will last for decades, since the trust fund must exist until the last eligible person turns 30.
- It puts the State Treasurer in charge of investing and managing this money, rather than leaving financial decisions to families.
- Once started, it will be nearly impossible to end – imagine the headlines: “Lawmakers Want to Take Away Children’s Futures!”
How It Would Work
When a baby is born to a Medicaid or CHIP family, they would automatically get $3,200 put into this government trust fund. If there’s not enough money for everyone, they’ll use a lottery to decide which babies get the money.
Once these kids turn 18, they can claim the money if they:
- Live in Nevada for at least a year
- Take a government-approved financial literacy course
- Promise to use the money only for college, buying a home, starting a business, or certain investments
The State Treasurer would manage all this money, send annual statements, and make investment decisions.
What Supporters Say
Supporters claim this program will help break the cycle of poverty by giving low-income children assets to build wealth.
Supporters of the program claim baby bonds give children born into poverty a fair shot at building wealth. They argue that with rising inequality, government intervention is needed to help low-income children access opportunities for financial advancement.
They point to research suggesting that even small amounts of savings can change how children think about their future and improve graduation rates.
The Conservative Perspective
This plan raises serious concerns for those who believe in small government and personal responsibility:
Critics point to the government’s track record with managing money, citing examples like Social Security’s funding challenges and the growing national debt. Many question why we would trust the government with yet another long-term financial program.
Other critics point out that the program’s $3,200 initial investment, even with decades of growth, won’t be enough to meaningfully pay for college or buy a home in today’s dollars.
The real issue is that this creates another permanent government program that will likely grow over time and be nearly impossible to shrink later.
What’s Happening Now
The bill was heard on Monday in the Ways and Means Committee, showing this proposal is already moving through the legislative process. With Democrats controlling both chambers of the Nevada legislature, it could advance quickly if conservatives don’t speak up.
If approved, the program would begin on January 1, 2026, with the first payouts happening around 2044 when those babies turn 18.
What You Can Do
If you’re concerned about this government expansion, here are some steps you can take:
- Contact your representatives and tell them you oppose creating new entitlement programs.
- Attend public hearings when the legislature discusses this bill.
- Support alternative approaches like tax credits for family savings accounts that put parents in control rather than government.
Remember, once government programs start, they rarely end. This is the time to speak up if you believe families and communities, not government, should be responsible for building financial security.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
