'Impact would be transformative' The lawmakers continued: “The impact would be transformative: at a cost of approximately $60 billion annually, less than 10 percent of what we currently spend to subsidize wealth-building through the tax code, we can give every American a stake in our economy and agency over their future,” they said. By their estimates, a child who gets $1,000 at birth and $2,000 every year since then would end up getting more than $46,000 by the time they turned 18, given an annual interest of three percent. When Booker announced his presidential run in February 2019, Vox cited a study to say that the idea of baby bonds embraced by Booker, who ran for the 2020 presidential nomination, would almost entirely bridge the wealth gap between young Black and White people. Also, recent studies by Columbia University and Morningstar have found that the baby bonds program would reduce the racial wealth gap considerably among young American adults.