On December 16, 2025, United Way joined Treasurer Pieciak and local leaders to announce a $300,000 commitment from M&T Bank (NYSE:MTB) to support a Baby Bonds pilot program in the Northeast Kingdom. It’s the initiative’s first major funding commitment, marking an important milestone in efforts to address intergenerational poverty, rural economic development, and retention of young people in Vermont.

Under a Baby Bonds program, qualifying children would receive a seed investment account at birth. As the child grows, so does the investment. By age 18, the beneficiary can access their baby bond for wealth-building avenues like higher education, homeownership, starting a business, or retirement savings.

United Way of Northwest Vermont will serve as the pilot’s fiscal sponsor. CEO Jesse Bridges said, “The Baby Bonds pilot is a crucial step in closing Vermont’s wealth gap by creating pathways to financial security. United Way of Northwest Vermont is proud to serve as fiscal sponsor and to collaborate with our counterparts at Green Mountain United Way to make sure Northeast Kingdom families have the wrap-around support they need to set children up for success. Together, we can create a stronger financial future for every generation.”

In 2023, Treasurer Pieciak and legislative leaders brought forward a proposal to create a Baby Bonds program in Vermont for children born on Medicaid. Under the proposal, beneficiaries must be Vermont residents to claim their baby bond and funds must be spent largely in-state. This key provision would help retain young Vermonters and ensure the program serves as a direct investment in the state’s future.

Recently, the Treasurer’s Office joined local and national partners to create a Baby Bonds pilot program in the Northeast Kingdom. The pilot will demonstrate the program’s transformative potential to strengthen families, communities, and the economy in Vermont’s poorest, most rural region where over half of children are born on Medicaid.

Treasurer Pieciak thanked M&T Bank for their early and significant support of Vermont’s Baby Bonds pilot. “Baby Bonds will make it more affordable for the poorest Vermonters to own a home, build wealth, and lead hopeful, fulfilling lives,” said Treasurer Pieciak. “I want to thank M&T Bank for their generous commitment, which brings us one step closer to building a stronger economy rooted in fairness, opportunity, and belief in every Vermonter’s potential.”

Heidi Stumpff, M&T Bank’s Regional President in Vermont and United Way of Northwest Vermont board member, said, “At M&T Bank we believe in breaking down barriers and opening pathways to long-term stability, so every child has the opportunity to thrive. We are proud to partner with the State of Vermont on this groundbreaking initiative that will strengthen the families and communities of the Northeast Kingdom and across the state. Baby Bonds are a critical investment in our children and Vermont’s future.”

The press conference took place at a family resource center in Lyndon run by Northeast Kingdom Community Action (NEKCA), a regional service provider empowering the most vulnerable Vermonters to achieve positive growth and change.

“Due to the Northeast Kingdom’s unique rural landscape, opportunities for young people to build wealth and achieve upward mobility are often unattainable. This only widens the gap between our region and the rest of the state, holding back the futures of the children and families that reside here,” said Jenna O’Farrell, NEKCA Executive Director. “A Baby Bonds program has the power to change that trajectory, and this pilot marks the first step toward a future where every child has a real chance to prosper.”

Officials were also joined at the press conference by legislative leaders, including Senator Kesha Ram Hinsdale, who served as the lead Senate sponsor of the original statewide proposal in 2023. “I am so grateful to the Treasurer and M&T Bank for keeping Baby Bonds on the table for our most vulnerable families,” said Senator Ram Hinsdale. “This investment will without a doubt build prosperity, wealth, and affordability for those who otherwise feel the economy has been rigged against them.”

The Baby Bonds pilot will be an essential component of First Steps Forward, a three year “Super Bundle” including the Treasurer’s Office, the National Diaper Bank, and the MOMS Partnership. First Steps Forward aims to address maternal stress and economic insecurity during pregnancy and the postpartum period by providing wraparound services to pregnant people in the Northeast Kingdom receiving Reach Up (TANF). The Treasurer’s Office will oversee the Baby Bonds portion of First Steps Forward and seeks to raise $1.5 million for the pilot.

Treasurer Pieciak emphasized the support from M&T Bank gives the Baby Bonds pilot real momentum. “Across Vermont and nationwide, wealth continues to be concentrated at the top, while opportunities for working people to get ahead are few and far between,” said Treasurer Pieciak. “Baby Bonds would help build an economy that works for everyone, and with partners here in Vermont and nationwide, I’m confident we can make this vision a reality.”

Dr. Darrick Hamilton, a national thought leader on Baby Bonds who joined Treasurer Pieciak in 2023 to announce the initial proposal, said Tuesday’s announcement reflects growing momentum for Baby Bonds across the country. “This announcement is a powerful step forward for Vermont specifically and for the national Baby Bonds movement generally. By piloting a well-designed Baby Bonds program in the rural context of the Northeast Kingdom, Vermont is showing how we can translate bold ideas into an authentic opportunity for children to build wealth—and build the evidence and momentum needed to eradicate intergenerational poverty and make Baby Bonds a durable part of public policy across the country.”

To support the Vermont Baby Bonds pilot program, the Treasurer’s Office is seeking private funding from philanthropic sources. Those interested in supporting the program can learn more here.