child turned 18. Darity and Hamilton projected that if three-quarters of newborns were eligible and the average trust amount was $20,000, the program would cost $60 billion annually. American Opportunity Accounts Act U.S. Senator Cory Booker introduced Senate Bill 3766, which called for the creation of American Opportunity accounts (AO accounts), in the 115th Congress. AO accounts would be provided to each newborn child upon their birth, as well as to children who had not yet turned 18 as of the bill's introduction. Each American Opportunity account would be seeded with an initial $1,000 from the proposed American Opportunity Fund operated by the U.S. Treasury Department, with a variable amount added each year depending on the child's household income level, as seen in table 1. In the proposal, the account could not be withdrawn from until the holder of the AO account turns 18, and use of the funds in AO account would be restricted to higher education, home ownership, or "other investment... that provides long-term gains to wages and health". Notably, the bill explicitly states that amounts in AO accounts could not be considered when determining eligibility for any federal benefit or service, including financial aid for education. The estimated annual cost of this program is $60 billion, which would provide AO accounts to the approximately four million newborns in the U.S. annually. Booker has proposed funding the program by raising estate taxes and closing a capital-gains loophole. In an examination of the American Opportunity Accounts Act, Morningstar determined that "Baby bonds would cut the racial wealth gap in half in terms of resources available per child at age 18". New Jersey plan In August 2020, Governor Phil Murphy of New Jersey introduced a baby bonds proposal to the amended state budget, which was billed as a "scaled-down version" of Booker's proposal. The plan would provide a one-time transfer of $1,000 to newborn children whose families make 500% or less of the federal poverty level, without the annual additions present in Booker's proposal. These bonds would be worth around $1,270 after 18 years, and the program would cost $80 million annually. Implications and limitations Reparations Darity and Hamilton's 2010 article discussed at length the notion of a post-racial America, explaining that race-specific policies, including reparations, were not politically viable at the time. Baby bonds were designed to be race-neutral and remain so in all of the proposals above, and