This year the state treasurer requested legislation (HB 1861/SB 5752) that would create a Washington future fund trust fund, as a way to provide funds for people born into low-income families that they could use as adults.

As originally introduced, the bills would have deposited in the trust fund $3,200 for each person born in Washington beginning Jan. 1, 2024, if their birth is covered by Medicaid. It would have appropriated $64 million in FY 2022 to begin investments in the fund. The money would have been invested, and a beneficiary aged 18 to 31 would have been able to claim the original amount plus the investment earnings. Beneficiaries would have to have income less than 193% of the federal poverty level and live in Washington to claim the funds. They could be used for postsecondary education, to buy a house, or to start a business.

The bills did not pass in either the House or Senate. However, the supplemental operating budget (sec. 123(2)) provides $450,000 (from the state treasurer’s service account) to establish a committee on how a Washington future fund model would affect wealth gaps. The committee must also make recommendations on how to implement such a program. A report is due by Dec. 1, 2022.

(Previous posts on the supplemental budget are here.)