Relates to the establishment of a healthy birth grant demonstration program; excludes healthy birth grants from income for certain purposes

This bill creates a demonstration program that provides a one-time payment of $1,800 to households with new parents who are already receiving medical assistance from the state. The program is designed to help families during the third trimester of pregnancy and defines eligible recipients to include biological, adoptive, and legal guardians of the child. To ensure the money does not reduce other financial support, the legislation explicitly excludes these grants from counting as income or assets when determining eligibility for various public benefits, including food assistance, low-income energy aid, and state payments. Additionally, the bill ensures that recipients do not have to pay state or local income taxes on the grant amount.